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SEP 26 2013

LNG sourcing, trading to be GAIL's key focus

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 26th SEP 2013

With dependence of imported natural gas becoming inevitable to meet the domestic demand, GAIL (India) Ltd is looking at further strengthening its position in the gas business by booking capacities in the existing LNG terminals and striking deals with overseas gas sources.

B. C. Tripathi, Chairman and Managing Director, speaking to the company's shareholders at the 29 {+t} {+h} Annual General Meeting here on Wednesday, said his company has entered into an understanding with Petronet LNG Ltd for reserving 2.5 million tonnes annually exclusive capacity in the planned expansion of Dahej LNG terminal to meet the demand. Petronet is expanding Dahej terminal's capacity by another five mt that will take the total capacity to 15 mt.

GAIL has also commissioned Dabhol LNG terminal at Ratnagiri, Maharashtra. This LNG terminal will act as the gateway for supply of natural gas to the country's southern and western parts. GAIL will be the commercial operator of the terminal for the next 25 years, he said.


Tripathi also said GAIL is planning to venture in LNG shipping to bring the contracted gas to India. It has signed a memorandum of understanding with Shipping of Corporation India Ltd to co-operate for transportation of LNG sourced by GAIL from the US.

Under the MoU, GAIL and SCI shall co-operate for transportation of 5.8 mt a year of LNG. The gas will be sourced by GAIL from Sabine Pass and Cove Point terminals in the US.

The co-operation includes SCI assisting GAIL in the charter hiring of LNG ships and GAIL allowing SCI rights in the ownership of LNG Ships.

The key growth areas for the company, according to Tripathi, will be upstream (exploration & production), midstream (pipelines) and downstream (petrochemicals). Focus will also remain on maintaining leadership position in domestic gas and petrochemical businesses, he said.

While building new re-gasification capacity and expanding the pipeline network will continue to be the company's focus, he said GAIL will be strengthening trading capability further to address domestic and international markets.


Maharashtra United States Liquefied natural gas Petronet LNG Ltd India AIL

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