LNG
By the end of 2009, the gas consumption in India stood at 166 MMSCMD with LNG occupying 15% (25 MMSCMD) of the entire gas market. The gas consumption in India is expected to be 230 MMSCMD under a base case scenario and to be 280 MMSCMD under an upper case scenario by the year 2015. The proportion of imported LNG is expected to increase to 20% (45 MMSCMD) under the base case scenario and 32% (90 MMSCMD) under the upper case scenario by 2015. GAIL has been playing a principal role in ensuring that the Indian Government’s objective of achieving energy security is achieved.
As a dominant player in the gas market, GAIL plays a major role in sourcing of LNG and creation of pipeline infrastructure to form an efficient national grid that would ensure connectivity to all demand centers. To achieve these objectives, GAIL is actively pursuing LNG sourcing from major LNG producers/sellers all across the globe and has been adopting a strategy to have a mixed portfolio of spot, short/mid-term, and long-term deals.
To ensure long-term supplies in the past, GAIL has promoted Petronet LNG Ltd (PLL), along with oil majors Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Bharat Petroleum Coporation Limited (BPCL) for the import of LNG into India. PLL is currently importing 7.5 MMTPA of LNG from Qatar for its Dahej Terminal and will be importing 1.44 MMTPA from Gorgon LNG project, Australia for its Kochi Terminal. GAIL is also the sole transporter of the entire RLNG and a major off-taker from both these contracts.
GAIL had from time-to-time imported LNG on a spot basis to cater to additional gas demand in India. GAIL imported its first spot cargo from Algeria in May 2006 and the latest was from Trinidad & Tobago in November 2009. The Government of India has entrusted GAIL with the responsibility of reviving the LNG terminal at Dabhol in Maharashtra, as well as sourcing LNG for the terminal. GAIL is currently exploring all the possible options for sourcing around 5 MMTPA of LNG for the Dabhol Terminal.
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