GAIL firming up buyers for R-LNG from Dahej Terminal

Gas Authority of India Limited (GAIL) is in advanced stages of negotiations with large industrial consumers including Tata Power, Deepak Fer...

Gas Authority of India Limited (GAIL) is in advanced stages of negotiations with large industrial consumers including Tata Power, Deepak Fertilisers, Hindustan Petroleum Corporation (HPCL), Maharashtra State Electricity Board (MSEB) and Rashtriya Chemicals and Fertilisers (RCF) for the supply of around 12 million metric cubic meters per day (mmscmd) of regassified LNG (R-LNG) from Petronet LNG Limited’s (PLL) terminal at Dahej as also from other sources in Gujarat.

Top industry sources disclosed that GAIL had already signed heads of agreement with RCF on November 18 for supplying around 3.2 mmscmd of R-LNG. CMD of GAIL Proshanto Banerjee confirmed the move and said, “We are engaged in discussions with industrial consumers for supplying both R-LNG and natural gas at competitive prices”.

Sources disclosed that MSEB board had also given its in-principle nod for signing an agreement with GAIL for buying around 2.2 mmscmd of R-LNG for its 918 mw Uran power project in Maharashtra. Sources said the agreement would, however, not restrict MSEB from talking to other suppliers of gas as the board had asked GAIL to remove the ‘exclusivity clause’ from the terms and conditions of the deal.

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MSEB chairman AK Mago confirmed the move and said the board had discussed this proposal at length and taken the decision that an agreement could be signed with GAIL provided it agreed to remove the ‘exclusivity clause’.

“This is because in the changed circumstances, there will be more players who can supply gas to MSEB”, he said. Negotiations are also on with Maruti Udyog Limited (MUL) and with Rajasthan-based Mathania power company for supplying another one mmscmd of gas.

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