GAIL Commissions Dabhol LNG Terminal

India’s state owned gas firm GAIL has commissioned the Dabhol LNG terminal located at Ratnagiri, Maharashtra around 340 km south of Mumbai. The company also plans to increase the capacity to 7.5 mmtpa and then to 10 mmtpa in the next 2-3 years, the company said in a statement. 

The terminal is operated by RGPPL, a joint ventureof GAIL (India) Limited and NTPC as major share-holders and remaining equity being held by financial institutions and MSEB.  GAIL, the commercial operator of the terminal, had arranged commissioning cargo for the terminal in December 2012.

GAIL is also at an advanced stage of commissioning the 1400- kilometer Dhabol-Bengaluru pipeline system. The commissioning of the Dabhol terminal along with GAIL's cross country gas pipeline network is poised to integrate the entire gas market of India from Bhatinda/Nangal in North to Kochi in South spanning a gas grid over 3400 kms.

In addition to existing long term LNG tie-up with RasGas of Qatar, GAIL has recently signed long term agreements for 3.5 MMTPA with US based Sabine Pass Liquefaction Company at a price benchmarked to  Henry Hub gas price in USA and supply is expected to start from 2017/18.

GAIL has signed long term LNG deal with Gazprom for import of LNG from its Shtokman project being set up in the Arctic region. Supply from this 2.5 MMTPA deal with Gazprom will commence from 2018-19. We are happy to share that the Sabine pass project is on schedule.

In order to bridge the demand-supply gap during the intervening period, GAIL has executed medium term agreements with two suppliers from Europe for quantities of around 1 MMTPA to be supplied during 2013-15.