Business Line reported that GAIL Ltd is set to receive LNG cargo from Russia’s Gazprom on December 28th 2012 Friday to commission the Dabhol LNG terminal in Maharashtra.
The cargo carrying 0.138 million cubic meter of LNG equivalent to 80 million standard cubic meter of natural gas is expected to berth at the Dabhol terminal.
The 5 million tonne a year Dabhol plant has seen its own share of misfortunes. GAIL had earlier this year got LNG cargo for commissioning the plant, but had to abort it following equipment failures.
According to sources, GAIL is being very cautious this time round, and expects that by next month the plant will be commissioned. However, it will be fully commissioned only after the breakwater is constructed.
Breakwater is very important for an LNG terminal, as it helps in smooth berthing of the ships. Without breakwater, berthing is very tough during the monsoons.
Sources said that the cargo had been bought from the spot market. Though they remained non committal on the price, the prevailing spot LNG price is USD 15 million British thermal units. Currently, gas price is linked to Brent crude.
In Ratnagiri Gas and Power Co Ltd, erstwhile Dabhol project, GAIL has 31.52% stake, NTPC has 31.52%, 16.68% is with Maharashtra State Electricity Board and remaining 20.28% with financial institutions.