New Delhi: GAIL will operate its 5-million tonne per annum (MTPA) LNG terminal in Dabhol during the monsoon for the first time this year, following the completion of a breakwater facility that protects incoming vessels during rough sea conditions. The development marks a shift from its earlier practice of shutting operations from May 25 to late September every year.
“Our breakwater has been completed. We have applied for an all-weather terminal status with the authorities and hope to get authorisation in a week’s time. So, we will schedule LNG cargoes accordingly,” said GAIL Chairman and Managing Director Sandeep Kumar Gupta at the company’s post-earnings press briefing on Tuesday.
The terminal, located along Maharashtra’s western coast, is expected to start handling monsoon cargoes this season once regulatory approvals are received.
The gas utility is also exploring international partnerships. GAIL has received five proposals for acquiring equity in its proposed LNG project in the US, where it offered up to 26 per cent stake bundled with a 15-year supply contract. The company had invited bids last month and closed submissions on April 28.
“We have received good response from US companies,” said Director (Business Development) Rajeev Kumar Singhal.
Gupta added, “At the country level, we have great appetite for US LNG (for meeting energy needs),” pointing out that prices at the US benchmark Henry Hub, currently around USD 3.5 to 4 per mmBtu, make imports viable for Indian buyers. He also flagged the need for diversified pricing sources. “We believe there is great potential in increasing US LNG volumes… However, LNG linked to Henry Hub price of more than USD 4 per mmBtu would not compare favourably with gas indexed to Brent crude oil prices that averages USD 60 to 65 per barrel,” he said.
On the domestic front, GAIL’s board has approved the transfer of six city gas distribution licences to its subsidiary GAIL Gas Limited (GGL). These cover Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, and Cuttack. “In order to have a single entity for development of GAIL’s CGD Business and for bringing business synergy, efficiency and retail focussed business approach, the Board has recommended to transfer the 6GAs of GAIL to GGL subject to the approval of CCEA,” said Gupta.
The company reported a capital expenditure of ₹10,512 crore in FY 2024–25 and plans to maintain similar spending in the current financial year. Of this, ₹3,000 to 4,000 crore will go towards the petrochemicals segment, another ₹3,000 crore for pipelines, and the rest for areas such as compressed bio-gas and city gas.
BI Bureau
