GAIL: Dabhol LNG Terminal Will Run During Monsoons
Indian gas transporter GAIL (India) will operate its 5 million-tonnes-per-year liquefied natural gas (LNG) import terminal in western India during the monsoon season for the first time, after completing a breakwater facility, Chairman Sandeep Kumar Gupta said.
The company typically shuts the Ratnagiri terminal — popularly known as the Dabhol LNG plant — for four months from May 25 each year to avoid high tides. The new breakwater will now enable ship arrivals during the monsoon.
"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," Gupta said at a press conference.
Separately, GAIL's head of business development Rajeev Kumar Singhal said the company plans to expand Dabhol's capacity to 6.3 million tonnes per year by mid-2027, and to 12.5 million tonnes by 2031–32.
He added that GAIL has received five bids in a tender to acquire a stake in a U.S. LNG project, alongside a long-term LNG supply agreement.
Indian companies are increasingly seeking U.S. LNG linked to Henry Hub prices to reduce exposure to oil-indexed contracts, which dominate their current portfolios.
Gupta said Henry Hub-linked LNG prices are expected to average $3.5–$4 per million British thermal units, making purchases affordable on a free-on-board basis for Indian customers.
(Reuters)