Supply to Dabhol: Petronet signs LNG pact with RasGas
1-Jan-1970


Petronet LNG Ltd (PLL) has entered into a contract with RasGas of Qatar for import of 1.25 million tonnes of liquefied natural gas (LNG). According to PLL, the contract will be for supply of natural gas in its liquefied form from July this year to September 2008.

The LNG will be used to fire the beleaguered 2,150 MW Dabhol power plant in Maharashtra. While declining to give details on price of gas, Mr P. Dasgupta, Managing Director, PLL, said, ?the first cargo will arrive on July 7.?

The contract was signed in Doha on Tuesday. The LNG would be brought from Qatar at Petronet?s Dahej terminal in Gujarat and after regassification, piped to Dabhol through GAIL (India) Ltd?s pipeline.

The delivered price at Dabhol is estimated at $4.93 per million British thermal units (mBtu) for the gas after pooling this contract price with the price of its existing long-term contract which is estimated at $3.86 per mBtu. GAIL?s much-delayed pipeline is ready to go on stream as soon as the rain and flood situation in Maharasthra is under control.

According to GAIL sources, the gas and sales purchase agreement has been frozen but yet to be signed with Petronet.

Capacity Expansion

According to a statement issued here, PLL said that the nameplate capacity of Dahej terminal was recently increased by 130 per cent to 6.5 million tonnes per annum (mtpa), through de-bottlenecking of critical equipments.

This enhanced capacity will, however, merge into the expanded capacity of Dahej terminal to 10 mtpa, which would be commissioned between July 2008 and January 2009.

The additional 2.5 mtpa under the existing long-term SPA with RasGas is also expected to commence from 2009.

Mr Dasgupta also stated that this capacity which is further expandable by an additional vaporiser module of 2.5 mtpa, will be commissioned by end 2010. This would require construction of a second jetty, to be also commissioned by end 2010.

PLL has already signed an MoU with Gujarat Maritime Board for concession agreement and other approvals for the second jetty ? EPC for which would be awarded by June 2008, he said.


Source: Business Line, New Delhi, 04 July 2007
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