For sourcing of gas for Dabhol, LNG project

Richa Mishra

New Delhi, July 11

GAIL (India) Ltd is in talks with the Yemen Government for participating in the expansion of a liquefied natural gas (LNG) project in that country as well as sourcing LNG supplies from there for the Dabhol project, starting from 2009-10.

The initial response has been positive and a team from GAIL would be visiting Yemen shortly to take the discussions forward, sources told

Business Line

. GAIL is involved in sourcing LNG and its regasification at the Ratnagiri Gas & Power Pvt Ltd (RGPPL), erstwhile Dabhol project.

Sources said that as a promoter of RGPPL, GAIL's role was to source the LNG required to run the power plant of RGPPL as well as for the merchant sale of re-gasified LNG.

The capacity of the LNG terminal is 5 million tonnes per annum (MTPA), of which 2.1 MTPA would be required for the power plant. GAIL will be developing necessary infrastructure to sell 2.9 MTPA re-gasified LNG in the gas-starved markets of western India after payment of mutually agreed regasification charges to RGPPL, sources added.

(This article was published in the Business Line print edition dated July 12, 2006)
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