GAIL India hires 2.5 million tons a year capacity at Petronet's Dahej plant

State gas utility, GAIL India, has hired half of the 5 million tons a year capacity that Petronet LNG would be adding at its Dahej liquefied natural gas (LNG) import terminal. The company has also initiated an agreement to hire 2.5 million tons of capacity at Dahej.

Petronet, which is currently operating a 10-million tonne a year LNG terminal at Dahej, plans to expand it to 15 million tonnes a year in 2015. It is also building a 5-million tonne a year plant at Kochi in southern India. Further, companies including Gujarat State Petroleum Corp are also reported to be in talks with the firm to hire the remaining 2.5 million tonnes capacity.

Meanwhile, country’s leading gas transporter and marketer, recently, inked a legally binding 20 year liquefied natural gas (LNG) sales and purchase agreement (SPA) with Gazprom Marketing and Trading Singapore (GM&TS), a 100% wholly-owned subsidiary of Gazprom Marketing and Trading. Under the terms of the agreement, GAIL India will receive 2.5 million tonnes of LNG per annum equivalent to approximately 130 million MMBtu or 3.5 bcm or 122 bcf per annum over a period of 20 years expected to start from year 2018-19.