GSPC books Petronet LNG's re-gasification facility at Dahej

State-run Gujarat State Petroleum Corporation (GSPC) announced it has booked 2.25 million tonne per annum (MTPA) natural gas re-gasification capacity offerd by Petronet LNG Ltd (PLL) at its Dahej terminal in Gujarat.

GSPC has contracted the capacity on firm and long-term basis for 20 years. “GSPC will now be able to tie-up Liquefied Natural Gas (LNG) on a long-term basis in the international markets and serve its customers with an assured supply of gas for a longer tenure,” GSPC Managing Director (MD) Tapan Ray said.

Ray also called the agreement historic as it is the first time in India any company has provided long-term re-gasification capacity to its user for a 20-year term on a firm basis. While this will provide assurance of revenues to PLL, GSPC will gain from an assurance of capacity. 

PLL will provide a part of the contracted capacity from its existing terminal. Another part will be supplied from the expanded capacity at Dahej. The company is currently expanding the 10 MTPA Dahej terminal to increase this capacity to 15 MMTPA. The expansion is expected to be completed by 2016.
The Dahej plant was commissioned in 2004 with an initial capacity of 5 MMTPA. PLL's second plant at Kochi with a capacity of 5 MMTPA is expected to be commissioned in a few months. The company is also planning to set up its third terminal at Gangavaram in Andhra Pradesh with a capacity of 5 MMTPA.

Apart from booking the capacity, the two companies have also agreed on connecting the proposed Gangavaram Terminal of PLL with the Mallavaram-Bhilwara pipeline being built by a consortium led by GSPL, a GSPC group company.