Indonesia, Qatar may supply LNG for Dabhol plant

India may source liquefied natural gas (LNG) from Indonesia and Qatar for restarting the $2.9 billion Dabhol power plant.

Gail, which has been mandated to source LNG for the plant, is tapping Indonesian state firm BPMIGAS' Bontang plant, which has spare liquefication capacity of 2.3 million tonne per annum, a Gail official said.

Qatar, too, has agreed to consider the supply of 0.5-1 million tonne of LNG, beginning next year, to meet the needs of the 2,184 MW plant in Maharashtra.

Preliminary indications are that the 740 MW Phase-1 (which requires 0.5 million tonne per annum LNG) may be re-commissioned in 2006, and the plant will be fully operational by 2007 (with a requirement of 2.1 million tonne per annum LNG).

Gail has also received 'in-principle' approval from Oman and Abu Dhabi, the plant's original LNG suppliers, for supply of feedstock, the official said.

"We have ensured that the LNG contract signed by Enron (the plant's original promoter) with Oman LNG is still legally valid," he said.

Enron had contracted 1.6 million tonne LNG from Oman and 0.5 million tonne from Abu Dhabi, but it could not import it as the plant was shut down following a payment dispute with its sole customer Maharashtra State Electricity Board.