Dabhol terminal to get first LNG cargo in Dec

Ratnagiri Gas and Power Pvt Ltd (RGPPL), the owner of the beleagured Dabhol power plant, is likely to receive its first cargo of LNG next month.

"The 5 million tons a year liquefied natural gas (LNG) terminal (adjacent to the 1,940 megawatt power plant) is mechanically complete," a company official said on the sidelines of the Petrotech-2010 oil and gas conference here.

"The terminal will be commissioned by this month end."

But since dredging and construction of breakwater facility is not yet complete, the terminal will be commissioned through smaller ships thereby leading to only 30-40 per cent capacity utilisation.

Dredging of the sea-channel leading to the Dabhol terminal is likely to be completed by end of 2011 but the construction of a breakwater that will guard ships against high tides, was not likely before 2013-14.

The LNG terminal will become fully operational only after the completion of the breakwater facilities.

"For the time being, commissioning of the terminal will be achieved through spot cargoes and thereafter, LNG will be sourced through regular tie-up for which discussions are already underway with four parties," he said but refused to identify the LNG suppliers the company was talking to.

The power plant currently runs on 8.5 million standard cubic meters per day of natural gas supplied from Reliance Industries' eastern offshore KG-D6 fields.

State-owned gas utility GAIL and power generator NTPC own 29.65 per cent equity stake each in RGPPL while 15.71 per cent is with Maharashtra State Electricity Board (MSEB). The remaining stake is with financial institutions (IDBI 9.4 per cent, State Bank of India 7.65 per cent, ICICI Bank 6.3 per cent and Canara Bank 1.65 per cent).