GAIL to Double Capacity of Dabhol LNG Terminal

16 Apr 2024 , 10:22 AM

To take advantage of the potential that the anticipated increase in gas imports will bring, GAIL intends to construct new terminals across the nation and more than double the capacity of its LNG terminal in Dabhol, Maharashtra.

GAIL chairman Sandeep Kumar Gupta told ET that the country’s largest natural gas marketer and transporter intends to gradually increase the capacity of its Dabhol terminal to 12 million tonnes per year (mtpa) by 2030–31.

Despite having a nameplate capacity of 5 mtpa, the Dabhol terminal only produces about 2.9 mtpa because it is not used during the monsoon season. The business is constructing a breakwater infrastructure to enable the terminal to run in the monsoon as well.

Plans for new LNG import terminals are also being developed by GAIL, but they are still in the early phases, according to Gupta.

“Imports currently account for around half of petrol consumption, and by 2030, this percentage is unlikely to decline. If more gas has to be imported, more terminals will be needed,” Gupta said.

About 48 million tonnes of LNG may currently be imported into the nation, and an additional 20 million tonnes are reportedly in the works. “But these terminals will not be enough if the gas goals are to be met, and we will need to add more,” Gupta remarked, alluding to the national objective of raising the proportion of natural gas in the primary energy mix from approximately 6.5% to 15% by 2030.

Several LNG terminals have grown in recent years as a result of the government’s initiative to increase the economy’s reliance on natural gas. However, neither petrol consumption nor imports have increased at the same rate, which has left terminals severely underutilised.

Gupta predicted that growing local demand will eventually address the underutilization.

Four of the seven LNG terminals in the nation run at less than 25% capacity, and two more at less than 40%. At Dahej, the oldest and largest city in India, just one terminal runs above 95%.

Additionally, GAIL owns a 12.5% share in Petronet LNG Ltd., the company that runs the Dahej terminal. New companies in the LNG terminal industry have been attracted by Petronet’s consistently impressive revenues throughout the years.

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