Press Releases
[New Delhi, 22nd May, 2006]

GAIL brings India’s first spot LNG cargo at Dahej

New Delhi, May 22, 2006: GAIL (India) Ltd has received the first spot LNG cargo from Algeria at the Petronet LNG Dahej terminal in Gujarat. For the first time in the Indian markets, GAIL has aligned the Indian gas sector with global trends at the prevailing rates.

Captained by Grandic Dalidor, the ship Golar Winter with a capacity of 135,000 cubic metres arrived to a ceremonial welcome at the terminal on Saturday, May 20. The discharge of the gas started at 1535 hrs on Saturday and was completed the next day at 0630 hrs.

Speaking at this occasion, GAIL Chairman & Managing Director, Shri Proshanto Banerjee said that the company is currently exploring the possibility of commercial gas storage to meet the demand of the consumers during peak season. Areas such as salt caverns, aquifers and depleted gas fields could be used for storing gas. The company is in the process of appointing a consultant in the next two month to identify ways of storing natural gas. A detailed report is expected by end of this year, after which it shall take about three years to make storage of gas possible.

With this successful marketing of spot LNG, the domestic gas market is aligned with the global gas market. Going forward, GAIL is in discussion with major suppliers for bringing more LNG cargoes from South East Asia, Middle East and North Africa.

With the initiation of spot LNG cargos, GAIL is expecting two more such cargos from Algeria and is also in talks with other potential LNG suppliers in Pacific Basin, Atlantic Basin and Middle East for spot as well as medium to long term supplies.