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GAIL hires 2.5 MT capacity at Petronet LNG's Dahej facility

Last Updated: Monday, October 8, 2012 - 23:59

New Delhi: State gas utility GAIL India Ltd has hired half of the 5 million tons a year capacity that Petronet LNG Ltd is adding at its Dahej liquefied natural gas (LNG) import terminal, company Chairman B C Tripathi said Monday.

"We have initialled an agreement to hired 2.5 million tons of capacity at Dahej," he said here.

GAIL, which recently struck a 20-year deal to buy 2.5 million tons a year of LNG from Gazprom of Russia, has under-written the expansion Petronet is doing of the Dahej terminal from 10 million tons to 15 million ton by 2015.

"We have under-written half of Petronet's expansion," he said.

GAIL, which owns 12.5 percents stake in Petronet, has been at the forefront of tying new LNG supplies to meet vast expanding energy needs of the country. It will being receiving supplies from Gazprom in 2018-19.

In December 2011, GAIL had signed an agreement to buy 3.5 million tonnes of LNG a year for 20 years from Houston-based Cheniere Energy Partners LP's Sabine Pass terminal in western Cameron Parish, Louisiana.

This year in August, it signed an agreement with GDF Suez to buy 12 cargoes of LNG or about 0.8 million tonnes of the fuel from 2013 to 2014.


First Published: Monday, October 8, 2012 - 23:59
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