Petronet LNG leases out Dahej capacity to GSPC
7 Jan 2013 5:49 AM IST
Petronet LNG Ltd, the nation's largest liquefied natural gas importer, has leased out 2.25 million tonnes per annum (mtpa) capacity at its Dahej terminal in Gujarat to Gujarat State Petroleum Corp (GSPC).
'GSPC on Saturday signed an agreement to book a capacity of 2.25 million tons on a long-term and firm basis,' Petronet LNG chief executive officer & Managing Director A K Balyan said.
While a part of this capacity will be made available from Dahej terminal's existing 10 million tonnes capacity, the rest will be from the expanded capacity, he said.
Dahej is being expanded to 15 million tons per annum by the 1st quarter of 2016. GSPC supplies gas to household and industrial consumers in Gujarat. Petronet will earn a tolling and regassification charge from leasing out the facility to GSPC, which has its own plans to build a LNG import facility.
'It's a use or pay agreement,' Balyan said. GSPC will have either imported 2.25 million tonnes of LNG annually or pay for usage charges. The agreement was signed by Balyan and GSPC Managing Director Tapan Ray in Dahej on Saturday.
Petronet is also building a 5-million tons a year plant at Kochi in Kerala.
Previously, Petronet had allowed state-owned gas firm GAIL (India) to use annually 2.5 million tons capacity at Dahej terminal for importing LNG. GAIL, which owns 12.5 per cent in Petronet, had under-written the expansion Petronet is doing of the Dahej terminal from 10 million tonnes to 15 million tonne by 2016.
'GSPC on Saturday signed an agreement to book a capacity of 2.25 million tons on a long-term and firm basis,' Petronet LNG chief executive officer & Managing Director A K Balyan said.
While a part of this capacity will be made available from Dahej terminal's existing 10 million tonnes capacity, the rest will be from the expanded capacity, he said.
Dahej is being expanded to 15 million tons per annum by the 1st quarter of 2016. GSPC supplies gas to household and industrial consumers in Gujarat. Petronet will earn a tolling and regassification charge from leasing out the facility to GSPC, which has its own plans to build a LNG import facility.
'It's a use or pay agreement,' Balyan said. GSPC will have either imported 2.25 million tonnes of LNG annually or pay for usage charges. The agreement was signed by Balyan and GSPC Managing Director Tapan Ray in Dahej on Saturday.
Petronet is also building a 5-million tons a year plant at Kochi in Kerala.
Previously, Petronet had allowed state-owned gas firm GAIL (India) to use annually 2.5 million tons capacity at Dahej terminal for importing LNG. GAIL, which owns 12.5 per cent in Petronet, had under-written the expansion Petronet is doing of the Dahej terminal from 10 million tonnes to 15 million tonne by 2016.
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