GAIL India awards LNG regasification services contract to Adani Ports

Indian gas company GAIL has awarded a liquefied natural gas (LNG) regasification services contract to Adani Group subsidiary Adani Ports and Special Economic Zone (APSEZ).

As per the contract, APSEZ will offer regasification services on a use or pay basis spread at its upcoming LNG import terminal at Dhamra in Odisha.

Under the terms of an agreement signed with APSEZ, GAIL India has booked 1.5 million tonnes per annum (Mtpa) capacity for 20 years.

GAIL intends to deliver the gas to its clients located in the eastern part of the country and along the Jagdishpur-Haldia gas grid, which is under development.

APSEZ CEO Karan Adani said: “Partnering with GAIL India for facilitating LNG imports is a notable milestone for Adani Ports.

“This project is now close to being fully subscribed and will play a pioneering role in powering eastern India towards a prosperous and economical gas based future. It will also become a hub for supply to Bangladesh and Myanmar.”

APSEZ awarded the contract to establish the tankages for gas storage to infrastructure firm Larsen & Toubro, while Taiwan’s CTCI won the contract for the regasification package.

Scheduled to be commissioned in the second half of 2021, the proposed LNG import terminal is designed for an initial capacity of 5Mtpa, with a potential to expand to 10Mtpa.

At first, the Dhamra terminal will have two full containment type tanks, with each having a capacity of 180,000m³.