GAIL, one of India’s leading gas distributor, is planning to significantly increase the capacity of its LNG terminal in Dabhol, Maharashtra, and also planning construction of new terminals across India to capitalize on upcoming opportunities in gas imports.
GAIL aims to raise the capacity of its Dabhol terminal to twelve million tons per annum (mtpa) by 2030-31 through phased expansions, as stated by GAIL Chairman Sandeep Kumar Gupta. Currently, the terminal operates at approximately 2.9 mtpa, despite having a nameplate capacity of five mtpa, largely due to seasonal shutdowns during the monsoon. To mitigate this limitation, GAIL is in the process of constructing breakwater infrastructure to ensure year-round operation.
The government’s efforts to boost natural gas usage in the economy have spurred the establishment of several LNG terminals in recent years. However, despite this expansion, gas consumption and imports have not kept pace, leading to significant underutilization of these facilities.
As reported by Swarajya, LNG is imported under the open general licensing (OGL) category, with terms and conditions agreed upon between buyers and sellers. Following regasification, the imported LNG is distributed to industries and domestic consumers through existing trunk pipeline networks traversing various states.
Currently, out of the seven LNG terminals in the country, four operate at less than twenty-five percent capacity, while two operate below forty percent. Only one terminal, the Dahej terminal, India’s oldest and largest, operates at over ninety-five percent capacity.
