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GAIL plans capacity expansion;   LNG Terminals underutilized; however, Chairman hopes this will be gradually resolved
GAIL, India’s largest gas distributor, aims to more than double the capacity of its LNG terminal in Dabhol, Maharashtra, and construct new terminals across the country to seize upcoming opportunities in gas imports.
Dr.G.R.Balakrishnan Apr 18 2024 Logistics News (Roadways & Railways)

GAIL plans capacity expansion; LNG Terminals underutilized; however, Chairman hopes this will be gradually resolved

The gas transporter plans to raise the capacity of its Dabhol terminal to 12 million tonnes per annum (mtpa) in a phased manner by 2030-31, GAIL chairman Sandeep Kumar Gupta said.

Currently, the terminal operates at around 2.9 mtpa, although its nameplate capacity is 5 mtpa. This limitation is due to seasonal shutdowns during the monsoon. To address this, the company is constructing breakwater infrastructure to ensure year-round operation.

GAIL is also planning for new LNG import terminals but those are in the preliminary stages, Gupta said. “Around half the current gas consumption is met by imports and the share is unlikely to come down by 2030. If more gas has to be imported, more terminals will be needed,” Gupta said.

The government’s push to increase natural gas usage in the economy has led to the establishment of several LNG terminals in recent years. However, despite this expansion, gas consumption and imports have not kept up, resulting in significant underutilisation of these terminals.

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As of now, the LNG terminals do not operate at full capacity excepting the Dahej terminal which too operates at 95% only.However, the GAIL chairman expressed hope that this underutilisation will gradually be resolved as domestic demand and imports rise.