GAIL still excited about Gangavaram

Vol 18, PW 10 (15 Jan 15) News in Brief
     

Despite fears Petronet-LNG has been told to abandon its 5m t/y Gangavaram LNG terminal proposal GAIL wants to book more than half the capacity.

“We have had several meetings with Petronet-LNG,” says a GAIL source. “The last one took place before Christmas.

We’re looking at booking 2.5m t/y capacity or even more.” GAIL is already the biggest offtaker at the Dahej terminal.

“But that is on the western coast,” adds another GAIL source. “Now our focus is on the east coast.

” Gangavaram holds India’s deepest all weather port with water depths of up to 21 metres. In May 2012, Petronet-LNG set up a JV with Gangavaram Port Ltd with a 76% stake with Gangavaram Port holding 8%.

HPCL tells us it wants 8% because the terminal is near its 8.33m t/y Vizag refinery. “Once our refinery capacity expansion to 15m t/y is completed by fiscal 2018-19,” says a HPCL source, “our gas demand will rise to 3m cm/d.

” Another 8% will be offered to a strategic investor.