Gujarat Adani to start importing spot LNG cargoes

Vol 10, PW 16 (30 Nov 06) Midstream & Downstream
     

Gujarat Adani wants to become the first private sector company in India to import LNG using the Petronet-LNG facility at Dahej as a merchant terminal.

We hope to bring in our first cargo by the end of December or in early January, reveals a source, and are talking to several suppliers. Among them are suppliers from Malaysia, Algeria, Nigeria and Egypt, with Nigeria and Algeria the most promising.

We think we can get a cheap cargo from Algeria. Gujarat Adani is confident it can secure LNG at between $7-$8 per mmbtu CIF, at present rates.

Yet its ambition to import LNG is constrained by the availability of a slot at Dahej, where LNG cargoes from Qatar supplying gas from RasGas come and go on a regular basis. Three things need to be synchronised, says Gujarat Adani.

Identifying a spot cargo, getting a slot at Dahej, and getting access to GAIL's network to transport the gas. Had we tied up all these three by now we would already have brought in a cargo.

Gujarat Adani believes it would take at least 10-12 hours to unload a typical spot cargo and after regassification a further 12-15 days to evacuate R-LNG at the rate of 8m cm/d. Yet with planning, finding a slot at Dahej shouldnt be difficult.

Petronet-LNG says Dahej can receive 98 cargoes a year assuming each cargo is 138,000 cubic metres. RasGas supplies 80 cargoes a year leaving 18 empty slots a year.

LNG cargoes unload at Dahej every four to six days for most of the year, reveals a source, and every five to six days during the monsoon when the seas are rough. Another option for Gujarat Adani is to use the Shell and Total operated LNG terminal at Hazira, but company sources are less than enthusiastic.

Shell's business model is the same as ours, we hear. There will be a conflict of interest.

Shell brings in a cargo when it has found a customer. We will also be doing the same.

Our target markets are the same people who buy bulk quantities of gas.