Petronet supplies begin, expansion to kick off in July

Petronet LNG Ltd (PLL), has started commercial supplies of liquefied natural gas (LNG). The company had in February commercially commissioned its 5 million metric tonne per annum (MMTPA) LNG plant at Dahej in Gujarat. PLL which has been planning to double its capacity to 10 MMTPA, is expected to start construction work for the third LNG storage tank in July.

"After our EPC contractor certified that the plant can operate at 60 per cent flow rate amounting to 11 million metric standard cubic metres/day (MMSCMD) from April 2, we have initiated commercial supply of regassified LNG from Dahej. As much as 60 per cent of this is being picked up by GAIL India Ltd, 30 per cent by the Indian Oil Corporation Ltd (IOC) and the balance 10 per cent by Bharat Petroleum Corporation Ltd (BPCL)," said P Dasgupta, director-finance, PLL.

The company is also procuring another ship to ensure consistent supply of gas from Qatar. PLL has signed a 25-year, 7.5 MMTPA agreement with RasGas of Qatar.

On future plans, Dasgupta said the next target is to initiate expansion work at Dahej. The detailed feasibility report, which is being prepared by the company, will be tabled before the PLL board in the last week of this month following which the expansion project will be formally approved by the board.

The EPC contract for construction of the third storage tank will be awarded by end of June and construction work will be initiated in July.