- News>
- Economy
Call to double Dahej terminal`s capacity
New Delhi, Nov 15: Indian Oil Corporation, Bharat Petroleum Corporation and Gail (India) Ltd are keen to double the liquefied natural gas import capacity at the Dahej terminal of LNG Petronet from five million tonnes to 10 million tonnes a year.
New Delhi, Nov 15: Indian Oil Corporation, Bharat Petroleum
Corporation and Gail (India) Ltd are keen to double the liquefied
natural gas import capacity at the Dahej terminal of LNG Petronet
from five million tonnes to 10 million tonnes a year.
Chairman of LNG Petronet and Petroleum Secretary B K Chaturvedi
said marketing the more expensive LNG would not be a problem as
demand for gas is rising fast while availability is likely to
increase from 65 million cubic meters (mcm) to 120 mcm in next three
years.
The statement assumes importance as major buyers of gas such as national thermal power corporation have not entered into any agreement for buying LNG as yet.
The gas will be imported in liquid form from Rasgas in Qatar on board cryogenic ships and then reconverted into gas at the Dahej terminal before it is fed into the Gail pipeline. The first consignment of the gas is expected to arrive in January next year. The project has been undertaken by Petronet LNG, a company floated by IOC, BPCL and Gail.
The power and fertiliser companies have been complaining that the price of the gas should not be above 3 per million british thermal units (btu) as the price of electricity and fertiliser in the country is regulated. These companies are presently using gas from the ONGC and Oil India fields, which is provided at cheap prices.
However, Petronet is targeting power and fertiliser units that are currently using naphtha, which costs more than LNG. The price of the imported gas is said to be around 4 per million btu.
Petronet has also stated that it was ready to match the lowest price for natural gas offered by any private competitor.
The LNG Petronet is also planning to extract C-2 and C-3 high valued gases from the imported LNG.
PLL, promoted by Indian Oil Corp (IOC), Oil and Natural Gas Corp (ONGC), Bharat Petroleum Corp Ltd (BPCL) and Gail, is investing Rs 800 crore in setting up a 5 million tonne LNG import and Re-gassification facility.
Bureau Report
The statement assumes importance as major buyers of gas such as national thermal power corporation have not entered into any agreement for buying LNG as yet.
The gas will be imported in liquid form from Rasgas in Qatar on board cryogenic ships and then reconverted into gas at the Dahej terminal before it is fed into the Gail pipeline. The first consignment of the gas is expected to arrive in January next year. The project has been undertaken by Petronet LNG, a company floated by IOC, BPCL and Gail.
The power and fertiliser companies have been complaining that the price of the gas should not be above 3 per million british thermal units (btu) as the price of electricity and fertiliser in the country is regulated. These companies are presently using gas from the ONGC and Oil India fields, which is provided at cheap prices.
However, Petronet is targeting power and fertiliser units that are currently using naphtha, which costs more than LNG. The price of the imported gas is said to be around 4 per million btu.
Petronet has also stated that it was ready to match the lowest price for natural gas offered by any private competitor.
The LNG Petronet is also planning to extract C-2 and C-3 high valued gases from the imported LNG.
PLL, promoted by Indian Oil Corp (IOC), Oil and Natural Gas Corp (ONGC), Bharat Petroleum Corp Ltd (BPCL) and Gail, is investing Rs 800 crore in setting up a 5 million tonne LNG import and Re-gassification facility.
Bureau Report