APSEZ signs long-term pact with GAIL for LNG facility at Dhamra port

Port infrastructure developer Adani Ports and Special Economic Zone (APSEZ) on Thursday said it has entered into a long-term pact with state-run GAIL (India) to provide liquefied natural gas regasification services at its upcoming LNG import terminal at Dhamra port in Odisha.

The LNG regasification services would be provided to GAIL on a use or pay basis, the company said in a BSE filing.

GAIL India has booked 1.5 million tonnes per annum (MTPA) regasification capacity for a period of 20 years, it said.

GAIL plans to supply the gas to its portfolio of customers located in the eastern region and along the under development Jagdishpur Haldia gas grid.

The LNG facility "will also become a hub for supply to Bangladesh and Myanmar", APSEZ CEO Karan Adani said.

The foundation stone of the project was laid in July last year and construction has been commenced by Larsen & Toubro. The terminal is likely to be commissioned during the second half of 2021.

The proposed Dhamra LNG import terminal is designed for an initial capacity of 5 MTPA, expandable up to 10 MTPA. It will be the second LNG terminal on the east coast after IOC's Ennore terminal in Tamil Nadu.