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GAIL Scraps Proposal to Lease Out Dabhol LNG Terminal

  • GAIL (India) promoted and the erstwhile Dabhol project Ratnagiri Gas & Power Pvt Ltd., or RGPPPL, said it had scrapped the proposal to lease out its liquefied natural gas terminal or LNG, reports said, quoting GAIL Chairman B.C. Tripathi.RGPPL had called for an expression of interest about a year ago from companies that would like to hire the LNG terminal under a tolling arrangement. Companies such as Reliance Industries Ltd., Chambal Fertilizers, GMR, Indian Oil Corporation Ltd., Essar, and NTPC had showed interest.

  • Ratnagiri Gas, which has an integrated power generation and LNG re-gasification facility, had decided to appoint a consultant to evaluate the expressions of interest. However, now GAIL wants to use the terminal itself.RGPPL had decided to lease out its LNG terminal to fully utilize its terminal capacity. It had planned to operate and maintain the terminal for re-gasification, while the arrangement of LNG cargo, transportation, marketing, distribution and use of re-gasified LNG would be the responsibility of the other party.

  • The company has constructed an LNG terminal with an initial capacity of two million tonnes a year without breakwater facility. With the breakwater facility, the terminal will have a capacity of 5 mt a year. It had planned to commission the terminal in April 2009, but the terminal will be commissioned in a couple of days.GAIL is expected to receive the first cargo from Excelerate Energy for its new Dabhol terminal on March 27.Meanwhile, GAIL is also looking for term contracts for LNG and will firm up something in another two-three months, Tripathi said.

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