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Time of India
14-05-2025
- Business
- Time of India
GAIL to expand Dabhol terminal to 12.5 mtpa by 2031-32, gets five US LNG equity proposals
New Delhi: State-owned GAIL (India) Ltd plans to expand its Dabhol liquefied natural gas (LNG) terminal's capacity to 12.5 million tonnes per annum (mtpa) by 2031-32, up from the planned 6.3 mtpa by mid-2027, according to a senior company official. GAIL's Director (Business Development) Rajeev Kumar Singhal said the company has received five proposals for equity stakes in US LNG projects, each tied to offers for long-term LNG supply contracts . GAIL had last month floated a tender seeking up to 26 per cent stake in a US LNG project, bundled with a 15-year LNG supply agreement. The latest process is a revival of a similar initiative launched in FY23. That process was put on hold after the US government paused approvals for new LNG export permits in 2024. Chairman and Managing Director Sandeep Kumar Gupta said the company sees potential for increased LNG imports from the United States. 'We already have a very attractive portfolio. In our old portfolio, 5.8 trillion tonne is coming from the US. There is great potential for other players also to increase their offtakes from US. And at country level, I think we have a great appetite for US LNG,' he said. Gupta said the current spot price of natural gas at Henry Hub, US is around USD 3.4 per MMBtu (Million British Thermal Units), and is expected to remain in the range of USD 3.5–4 per MMBtu in the near term. 'If the HH (Henry Hub) prices are say around USD 3.4 to 4 which is the present range, I think this makes a good sense in importing US is a great flexibility if we contract on FOB (freight on board) basis, because we can swap the US cargos also at an opportune time, so we believe there is a great potential,' Gupta said. The CMD said the company incurred a capital expenditure of Rs 10,512 crore during the financial year 2024-25. A similar capital outlay is planned for FY26, with Rs 3,000 to Rs 4,000 crore earmarked for the petrochemicals segment, around Rs 3,000 crore for pipelines, and the rest for other verticals such as compressed biogas (CBG) and LNG. During FY25, GAIL's natural gas transmission volumes rose by 6 per cent to 127.32 MMSCMD (Million Standard Cubic Meters per Day) from 120.46 MMSCMD in FY24. Its gas marketing volume reached 101.49 MMSCMD, up from 98.45 MMSCMD in the previous fiscal.
Time of India
14-05-2025
- Business
- Time of India
GAIL gets offers from 5 US companies for stake in LNG projects
Image used for representative purposes NEW DELHI: Five US companies have submitted bids in state-run GAIL's tender for acquiring up to 26% stake in a LNG (liquefied natural gas) project alongside a long-term supply contract for a million tonne of gas annually, a move that will help India reduce trade surplus with Washington. "We are currently evaluating five bids," company's director (business development) Rajeev Kumar Singhal said Tuesday but declined to identify bidders. Separately, people in the know said the bidders include two developers of projects in Louisiana, one of which has recently secured the Trump administration's nod to export gas to non-FTA countries. GAIL chairman Sandeep Gupta said the company is looking to tie up more US energy, even though it has two long-term contracts for a total of 5.8 million tonne per year because of price advantage. "We expect Henry Hub (US benchmark rate)-linked LNG prices to average $3.5-4 (per unit) in the short to medium term, making energy more affordable (than crude-linked gas) for customers. There is great scope for US energy as others (oil companies) also appear to be interested," he said. Expanding energy imports from the US was identified as one of the measures for reducing India's trade surplus during discussions in Washisgton between PM Narendra Modi and President Donald Trump in Feb. Gupta said GAIL has completed the construction of the Enron-era breakwater at Dabhol LNG terminal in Maharashtra's Ratnagiri district, which will allow operations during the monsoon to allow import of more LNG cargos. "We are expecting (statutory) approvals this week." GAIL's director (finance) R K Jain said the company's capex plan will be about Rs 10,000 crore in current fiscal. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
13-05-2025
- Business
- Time of India
GAIL gets five bids for US LNG project stake
State-owned gas importer GAIL (India) has received five proposals for equity stakes in US LNG projects, each linked with offers for long-term LNG supply contracts, top company officials said on Tuesday. GAIL last month floated a tender seeking up to 26 per cent stake in a US LNG project, bundled with a 15-year liquefied natural gas (LNG) supply contract. "We have received good response from US companies," GAIL Director (Business Development) Rajeev Kumar Singhal said at a company press conference. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Incredible, the TV box everyone is talking about: Access all channels ? Techno Mag Undo The offers, he said, were under evaluation. "There are five respondents." He did not share further details. Live Events GAIL floated the tender just as India negotiated a broader agreement with the US following President Donald Trump's newly imposed tariffs. The tender is a revival of a similar process kicked off by GAIL during the previous Biden administration in the US. That was stalled when then-president Joe Biden put a freeze on new LNG export permits for projects at the start of 2024. In the last month's tender, GAIL sought for offers on a stake in a US liquefiation project that would be commissioned by 2030 at the latest. It also wants to buy 1 million tonnes per annum of LNG from a US liquefaction plant on a free-on-board basis over a firm 15-year period with the option to extend this by five or 10 years. It is eyeing shipments to start in the 2029-30 period. Bids closed on April 28. GAIL Chairman and Managing Director Sandeep Kumar Gupta said the company's latest tender should not be linked to any other negotiations and it was simply revival of the 2023 tender. "At the country level, we have great appetite for US LNG (for meeting energy needs)," he said. India's domestic production of natural gas, which is used to produce electricity in power plants, make fertiliser and turned into CNG to run automobiles and piped to household kitchens for cooking, meets only half of its needs. The rest is imported in its liquid form (LNG). India is the world's fourth-largest buyer of LNG, with Qatar currently its largest supplier. "At the (US gas benchmark) Henry Hub price of USD 3.5-4 (per million British thermal unit), it makes good sense to import US LNG," Gupta said. "We believe there is great potential in increasing US LNG volumes." While LNG from the US is linked to Henry Hub prices, imports from other places like Qatar is benchmarked to crude oil prices. However, LNG linked to Henry Hub price of more than USD 4 per mmBtu would not compare favourably with gas indexed to Brent crude oil prices that averages USD 60-65 per barrel, he said. Gupta said India's gas demand is rising 6-8 per cent per annum. GAIL, he said, will operate its 5 million tonnes a year LNG import terminal at Dabhol in Maharashtra during the monsoon season for the first time. This after a breakwater facility that guards ships against high swells in the sea, was constructed. GAIL typically shuts the terminal for four months from May 25 every year during monsoon. The new breakwater will now enable ship arrivals during monsoon. "Our breakwater has been completed. We have applied for an all-weather terminal status with the authorities," Gupta said.
Reuters
13-05-2025
- Business
- Reuters
India's GAIL to run Dabhol LNG terminal during monsoons, plans expansion
May 13 (Reuters) - Indian gas transporter GAIL (India) will operate its 5 million-tonnes-per-year liquefied natural gas (LNG) import terminal in western India during the monsoon season for the first time, after completing a breakwater facility, Chairman Sandeep Kumar Gupta said. The company typically shuts the Ratnagiri terminal — popularly known as the Dabhol LNG plant — for four months from May 25 each year to avoid high tides. The new breakwater will now enable ship arrivals during the monsoon. "Our breakwater has been completed. We have applied for an all weather terminal status with the authorities and hope to get authorisation in a week's time. So we will schedule LNG cargoes accordingly," Gupta said at a press conference. Separately, GAIL's head of business development Rajeev Kumar Singhal said the company plans to expand Dabhol's capacity to 6.3 million tonnes per year by mid-2027, and to 12.5 million tonnes by 2031–32. He added that GAIL has received five bids in a tender to acquire a stake in a U.S. LNG project, alongside a long-term LNG supply agreement. Indian companies are increasingly seeking U.S. LNG linked to Henry Hub prices to reduce exposure to oil-indexed contracts, which dominate their current portfolios. Gupta said Henry Hub-linked LNG prices are expected to average $3.5–$4 per million British thermal units, making purchases affordable on a free-on-board basis for Indian customers.
