GAIL (India) Ltd has received LNG cargo from Russia’s Gazprom today to commission the Dabhol LNG terminal in Maharashtra.
The cargo carrying 1.38 lakh cubic metre of LNG equivalent to 80 million standard cubic metre of natural gas arrived at the Dabhol terminal in the morning.
GAIL is being cautious as its earlier attempt (in March) had to be aborted following equipment failure. According to sources, GAIL expects that by next month plant will be commissioned. Once commissioned, Dabhol will be the third LNG terminal in the country.
However, it will be fully commissioned only after the breakwater is constructed. Breakwater is very important for an LNG terminal, as it helps in smooth berthing of the ships. Without breakwater, berthing is very tough during the monsoons.
Sources said the cargo had been bought from the spot market. Though they remained non-committal on the price, the prevailing spot LNG price is $15/mmBtu. Currently, gas price is linked to Brent crude.
In Ratnagiri Gas and Power Co Ltd, erstwhile Dabhol project, GAIL has 31.52 per cent stake, NTPC has 31.52 per cent, 16.68 per cent is with Maharashtra State Electricity Board (MSEB), and remaining 20.28 per cent with financial institutions.
The project has 1,967-MW power plant and a five mtpa LNG terminal.