Petronet-LNG lands first Gorgon cargo at Dahej

Vol 20, PW 10 (09 Feb 17) Midstream & Downstream

Petronet-LNG has taken delivery of its first Gorgon LNG term cargo under its 1.44m t/y 20-year with ExxonMobil.

This report learns the cargo was discharged from Petronet-LNG's brand new tanker Prachi at Dahej on January 29. Originally destined for the 5m t/y stranded terminal at Kochi, it landed at Dahej because gas evacuation pipelines at Kochi are still not in place.

With uncertainty hanging over the Kochi terminal's future plus teething problems at Gorgon, observers say it will be sometime before Prachi begins regular supplies to Kochi. "Rather than keeping Prachi idle," says a source.

"Petronet-LNG would rather put it to use ferrying RasGas cargoes." After two days, Prachi left for Fujairah in the United Arab Emirates. GAIL and GSPC meanwhile are expecting two 'prompt' spot LNG cargoes at Dahej this month (February).

GAIL closed a tender on January 23 for a delivery in the first half of February while GSPC closed a tender on January 31 for a delivery in late February. "GAIL booked the cargo at around $9/mmbtu," reports a source.

"GSPC struck a better deal at $8/mmbtu." Separately, the new phenomenon of cargo-sharing is fast catching on. BPCL, Reliance and Hazira LNG shared a 171,197-cubic metre cargo sourced by Shell.

Reliance took 72,227-cubic metres and Hazira LNG took 17,600-cubic metres from Bermuda-flagged tanker GasLog Gibraltar which berthed at Hazira on January 31 before sailing to Dahej to discharge 81,370-cubic metres for BPCL.