NEW DELHI, April 17 (UPI) -- India's gas major Petronet LNG says it plans to import 1.25 million tons of liquefied natural gas yearly to supply the Dabhol power plant.
The company said that in the first phase, the 740-megawatt Dabhol plant would need 3 million cubic meters of gas daily. In the second phase, it would require 8 million cu m of gas.
Petronet LNG will import 20 spot LNG cargoes in the current fiscal year to meet this requirement, The Business Standard newspaper reported Tuesday.
It is diverting LNG to fertilizer and power plants because the pipeline between Dabhol and Dahej is not ready. The company has an LNG regasification plant at Dabhol.
The company said it was committed to supply 3 million cu m of gas to Dabhol once the Dabhol-Dahej pipeline is completed by June.
Government-controlled Gas Authority of India Ltd. manages the pipeline, which has been delayed due to opposition from farmers that forced its route to be diverted.
As per the earlier schedule, gas was to start running from March 31. Petronet is to supply gas to Dabhol until September 2009.
In the spot market, LNG is available with a price of around $8-$9 per million British thermal units, nearly double the price the company pays for LNG from Qatar under their long-term contract.
Petronet LNG imports 5 million tons of LNG from Qatar yearly for its terminal at Dahej in Gujarat.
Traditionally, markets such as India and China have been unable to secure long-term LNG supply contracts because they can't pay the rates being offered by larger buyers such as the United States and Japan.
