Energy major GAIL (India) Ltd plans to raise capacity at its Dabhol liquefied natural gas (LNG) terminal to seven million tonnes by 2015 from the present five million tonnes, said Chairman and Managing Director B.C. Tripathi on Thursday.
He was addressing the media after commissioning the terminal.
Tripathi said the company is upbeat about the LNG demand in the country, and that the capacity at the terminal would be eventually increased to 10 million tonnes.
Currently, the capacity cannot be increased because the breakwater wall, which will allow usage of the terminal for unloading the cargo in the monsoon season, is under construction. Breakwater will cost about Rs 1,000 crore, which will help increase the capacity to seven mt, he said.
The terminal, which is about 340 km from Mumbai, is functional and the first cargo from Russian energy company Gazprom is being unloaded. The terminal will serve as a gateway for the entry of natural gas to the southern and western parts of the country. The LNG would be supplied to customers such as Maharashtra Generation Company, Tata Power, Mahanagar Gas and RCF.
The terminal is owned by Ratnagiri Gas and Power Private Ltd, a joint venture of GAIL (India) and NTPC as major shareholders, while the remaining equity is held by financial institutions and Maharashtra Government. GAIL is the operator of the terminal.
GAIL, as a commercial operator of the terminal, has underwritten the regasification capacity of the terminal for 25 years. In the immediate future, LNG from the terminal will cater to the demand of the customers in Maharashtra through GAIL’s Dabhol-Panvel pipeline connected to the Maharashtra regional pipeline network.
Shipping venture
Tripathi said the company has also contracted for seven mt LNG capacity with a number of global players, some of which are from the US.
However, the contract with US players requires, GAIL to arrange its own sea transportation, therefore, the company is looking at chartering on long-term basis or purchasing six to seven vessels, “a study is under way for the vessels, it could take about three to four months to arrive at a decision,” he said.
Tripathi added that for increasing the capacity of the Dabhol terminal to 10 mt about Rs 2,000 crore would be required.
The company also has a Rs 5,000-crore war chest for overseas acquisition. It is especially looking at opportunities in LNG export terminals in the US market but is waiting for clear policy from the US Government on the matter.
rahul.wadke@thehindu.co.in