Gail, the state-owned gas distribution company in India, plans to close its Liquefied Natural Gas (LNG) terminal in Dabhol, located on the west coast of the country, with an annual capacity of 5 million tons as of May 15 , in anticipation of the monsoon rainy season.
Temporary pause of LNG imports at Dabhol terminal
According to a company official cited by Argus, Gail will also suspend LNG imports at the terminal from mid-May, due to the absence of a breakwater at the terminal. port infrastructure , which makes it difficult to anchor ships in adverse maritime conditions. Although construction of the breakwater was expected to be completed in January, the cause of the delay has not yet been determined.
The terminal is likely to resume operations by the end of September, following a similar pattern to previous years, as closure during the monsoon season is common practice. During the month of May, the terminal is expected to receive a total of 139,635 tons of LNG from two separate shipments from the Cove Point export facility in the United States, with an annual capacity of 5.75 million tons. These will be the last loads received before the closure scheduled for mid-May.
Gail will expand LNG capacity
Since the beginning of the year, the terminal has received a total of 583,326 tons of LNG, which represents 4% less compared to the same period of the previous year , according to data from market analysis firm Kpler.
Despite having a nominal capacity of 5 million tonnes per annum, the Dabhol terminal only receives around 2.9 million tonnes of LNG annually as it does not operate during the monsoon season. Gail plans to gradually increase the terminal’s capacity to 12 million tonnes annually between April 2030 and March 2031.
The decision to close the Dabhol LNG terminal during the monsoon season highlights the importance of logistics planning and proper port infrastructure in the industrial sector. This scheduled closure reflects the need to adapt to weather conditions and operational challenges, while working to expand and improve the terminal’s capacities to meet the growing demand for LNG in the region.
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Source: argusmedia.com
Photo: Shutterstock
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