The INR 3,000 crore terminal, accounting for around 25% of the overall cost of the Dabhol project was initially meant to feed the adjoining power plant.
A senior official from Ratnagiri Gas and Power Pvt Ltd however added that gas from the terminal would not be used to run the Dabhol power plant and would be supplied entirely to other domestic companies.
RGPPL had initially planned to commission the terminal in March this year. The official said that “The LNG terminal will now be commissioned by November-end. There has been some delay due to bad weather conditions leading to excessive silt at the port which requires dredging.”
Like the first two LNG terminals that are located at Dahej and Hazira in Gujarat the Dabhol LNG terminal will also be on the west coast.
The gas starved power plant has been allocated 2.7 million standard cubic metres per day of gas supply from the Reliance Industries’ block in the Krishna-Godavari basin. This supply an agreement for which was inked by the company in June this year is likely to begin from October 1.
An earlier proposal of hiving off the Dabhol LNG terminal was turned down by the government last year as the proposal faced opposition from NTPC Ltd and GAIL, which hold 28% equity share each in the Dabhol power project.
The terminal with an LNG regasification capacity of 5 million tonne per annum forms a part of the integrated Dabhol power project owned by RGPPL. The terminal will however become fully operational only after completion of the breakwater facilities in 2011.
(Sourced from www.steelgruu.com)
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