GAIL (India) on Friday said that the liquefied natural gas (LNG) terminal in Dabhol is likely to be commissioned by end of January. The project hangs in limbo for the past 15 years.
“Construction is expected to be completed by November-end. We are expecting the first cargo by December and commissioning should happen by January 2013,” said B.C. Tripathi, Chairman and Managing Director of GAIL.
The cargo is yet to be tied up and GAIL is in talks with different players, said Tripathi, adding that the company would buy about eight additional spot cargoes till the end of current financial year.
GAIL is conducting a due-diligence for buying equity in Mukesh Ambani-promoted Reliance Gas Transportation Infrastructure Ltd (RGTIL).
“Gas transmission is our core business. We would evaluate the proposal and take a decision at a suitable moment. We are doing the due-diligence,” Tripathi said.
At the same time, GAIL board on Friday gave its go-ahead for Rs 2,000 crore proposal for doubling the capacity of Jamnagar-Loni LPG pipeline.
The work will be completed in 36 months and capacity would increase to 4.5 million tonnes from 2.5 million tonnes currently, Tripathi said.
Net profit down 10%
The gas transmission and marketing company said its net profit during the second quarter of this fiscal has gone down 10 per cent against the same quarter last year. This is because of higher subsidy burden and drop in gas transmission volumes.
It reported profit after tax of Rs 985 crore during July-September 2012 against Rs 1,094 crore in the same period last fiscal.
“The drop in net profit is due to a 39 per cent increase in subsidy burden borne by the company. The subsidy burden has gone up to Rs 786 crore from Rs 567 crore,” said Tripathi.
GAIL saw its revenues from natural gas transmission reduced to Rs 1,802 crore in the second quarter of 2012-13 against Rs 1,919 crore in the corresponding period previous year.
“We are transmitting 11 million metric standard cubic metre less every day (mmscmd),” the Chairman said.
The turnover in the second quarter increased 17 per cent to Rs 11,361 crore against Rs 9,699 crore in the second quarter last year.
GAIL has mopped up Rs 4,500 crore as debt in the current year, Tripathi told media persons. The company has lined up a capital expenditure of Rs 7,300 crore for 2012-13.