BackGail to buy LNG from Shell to start Dabhol terminal
Gail to buy LNG from Shell to start Dabhol terminal
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New Delhi: State-run gas utility Gail India Ltd will buy one cargo of liquefied natural gas from Royal Dutch / Shell and possibly a second shipload also to start the LNG import terminal adjacent to the Dabhol power plant in Maharashtra.
“We have got a commitment from Shell for supplying one cargo before March end," said R K Goel, Chairman of Ratnagiri Gas & Power Pvt Ltd, the joint venture firm of Gail and power utility NTPC, which operates the plant.
The cargo would be used to commission the 5-million-tonne-a-year LNG import and regassification terminal. “We will commission the LNG terminal by March-end and the LNG cargo arrival will be synchronised with the commissioning," he said.
The Shell cargo will arrive at the Dabhol terminal, he said, adding the company was also in talks with the Anglo-Dutch firm to buy one more cargo but has not received any commitments so far.
Goel said Gail had also floated tender for sourcing long-term LNG for the Ratnagiri terminal. The 2,150 MW power plants would need 2.1 million tonnes of LNG a year to operate at full capacity and the remaining part of the import capacity would be for merchant sales.
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