GAIL plans to resume LNG import from spot mkt in June/July
Press Trust of India / New Delhi Mar 12, 2010, 18:56 IST
State-owned GAIL India plans to resume import of liquefied natural gas (LNG) from spot market in June/July, months after flood of natural gas from Reliance Industries' D6 field nearly dried up spot LNG imports.
"We have hardly had any spot LNG purchases (in past few months). We are likely to import a cargo in June or July," GAIL Chairman B C Tripathi told reporters here.
RIL gas output touched 60 million cubic meters per day in December, drying up almost all of the five cargoes every two months that Petronet LNG imported from spot market.
Petronet, India's largest LNG importer, has not imported any spot LNG cargo since December as Reliance gas met most of the unmet demand with consumers connected with pipeline.
Tripathi said demand for spot LNG would open up once GAIL completes the expansion of a pipeline that connects west coast to markets in the north.
"Right now the HJV (Hazira-Vijaipur-Jagdishpur) pipeline has no capacity," he said. The pipeline transports gas from western offshore fields like Oil and Natural Gas Corp's Mumbai High and BG Group-operated Panna/Mukta and Tapti, and long- term LNG imported by Petronet.
"We will complete the first phase of expansion (of the pipeline) by April," he said, adding the expansion would not only enable more gas to be transported but would also connect new consumption centres in the north. "GAIL plans to import one spot LNG cargo a month after that."
The government has named customers in power, fertiliser, steel and city gas sectors as consumers of RIL gas. Most of these customers are in western India, the region that also consumes imported LNG.
Tripathi said HVJ pipeline would be fully upgraded by October when the capacity would go up from 57 mmscmd currently to 75 mmscmd.
Current domestic gas and imported LNG supplies in India is at about 170 mmscmd which is expected to rise to 260-270 mmscmd in three years when new LNG import facility at Dabhol in Maharashtra and Kochi in Kerala become operational as well as output from fields of RIL and other companies increases, he said.
Current demand for gas is about 270-280 mmscmd which is esimated to rise to 350-360 mmscmd in three years.
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