GAIL sourcing LNG to meet growing demands

GAIL has signed a memorandum of understanding with Shipping Corporation of India to cooperate for transportation of LNG sourced by GAIL from the US

GN Bureau | September 26, 2013



GAIL (India) Ltd. has entered into an understanding with Petronet LNG Ltd for reserving 2.5 million tonnes (mt) annually exclusive capacity in the planned expansion of Dahej LNG terminal to meet the demand. 

According to a news report in the Business Line, Petronet is expanding Dahej terminal’s capacity by another five mt that will take the total capacity to 15 mt.
B C Tripathi, chairman and managing director said that BHEL will be the commercial operator of the Dabhol LNG terminal at Ratnagiri, Maharashtra. The terminal will act as the gateway for supply of natural gas to the country’s southern and western parts.

In the face of growing domestic demand GAIL is also planning to venture in LNG shipping to bring the contracted gas to India. It has signed a memorandum of understanding with Shipping of Corporation India Ltd (SCI) to cooperate for transportation of LNG sourced by GAIL from the US.

The cooperation includes SCI assisting GAIL in the charter hiring of LNG ships and GAIL allowing SCI rights in the ownership of LNG ships.
According to Tripathi, the key growth areas for the company, will be upstream (exploration & production), midstream (pipelines) and downstream (petrochemicals). Focus will also remain on maintaining leadership position in domestic gas and petrochemical businesses, he added.


 

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