Dabhol LNG import plant likely to be commissioned by Jan-end

The beleagured Dabhol LNG import plant, which was built about 15 years back, is likely to be commissioned by January end, GAIL Chairman and Managing Director B C Tripathi said today.

GAIL had in March this year imported a shipload of LNG for commissioning the 5 million tonnes a year facility. But the operations had to be aborted midway after two successive equipment failures.

"Fenders (which are used to prevent damage to vessels while berthing at the port) are being replaced. Also, new bellows are being put. We estimate the construction and repair will be completed by end of November and we would be in a position to bring a commissioning cargo in end of December," he said.

"If things work to as per plan, the commissioning of the terminal is expected by January-end," he said.

GAIL, which had in March bought a cargo from Statoil ASA's Snohvit LNG plant in the Barents Sea off Norway for commissioning the plant, has not yet tied up commissioning cargo this time.

GAIL is looking to tie-up up to 2 million tonnes of LNG for import at the nation's third liquefied natural gas terminal.

The terminal, which will take about 45-days to be fully commissioned, is expected to operate at less than 60% of capacity in the absence of a breakwater, which guard ships against high tides.

In the absence of breakwater, the terminal may not be able to operate during four monsoon months beginning May-end.

The construction of a breakwater is likely to be completed in 2013-14 after which the LNG terminal will become fully operational.

GAIL owns 31.52% stake in Ratnagiri Gas and Power Co Ltd -- the firm that owns the 1967 MW power plant and adjacent 5 million tonnes a year LNG import terminal.

The power plant and LNG terminal were originally built by now bankrupt US energy major Enron Corp. Ratnagiri Gas and Power Co (RGPPL) took over the project in 2005 after the Enron's bankruptcy. The LNG terminal was 80% complete when RGPPL took over the plant.

GAIL mechanically completed the plant in late 2010 and dredging work of the sea-channel leading to the Dabhol port was completed last year.

Like GAIL, power generator NTPC too own 31.52% equity stake each in RGPPL while 16.68% is with Maharashtra State Electricity Board (MSEB). The remaining 20.28% stake is with financial institutions.