State-owned GAIL (India) Ltd has shown interest in buying the liquefied natural gas (LNG) terminal associated with the 1,967 megawatt Dabhol Power Station, operated by the Ratnagiri Gas and Power Pvt. Ltd (RGPPL), for about Rs.2,400 crore.

GAIL’s interest in the 5 million tonne per annum (mtpa) regasification terminal comes in the backdrop of the central government announcing a bailout plan for gas-based power projects and their lenders, under which LNG will be imported and the cash-strapped state power distribution firms extended financial support to buy electricity from gas-based power producers.

Under the plan, India plans to import 10 million metric standard cubic metres/day (mmscmd) of LNG, going up to 18 mmscmd after the monsoon.

A regasification terminal converts LNG to gas before passing it on to customers. India has four regasification terminals, including the one at Dabhol, with a total capacity of 25 mtpa. MORE