REUTERS[ THURSDAY, MARCH 23, 2006 11:51:49 AM]
NEW DELHI: GAIL (India) Ltd said it had signed an agreement with Royal Dutch Shell to use part of the oil major's facilities to regasify imported liquefied natural gas (LNG) in western India.
Shell set up India's second LNG terminal last year at Hazira in the western state of Gujarat, where Petronet LNG built its LNG importing facilities at Dahej in 2004.
GAIL spokeswoman Vandana Chanana said the company would only use part of the 2.5-million-tonne per annum capacity terminal.
“GAIL has an agreement with Shell for using a part of their regasification capacity at Hazira as a tolling facility and would use the terminal as and when GAIL imports LNG,” she said. This month, a senior GAIL official who declined to be named said that the company was in talks to use the entire capacity of Shell, which would eventually provide LNG for the Dabhol power plant in the western state of Maharashtra.
The company source had said the first cargo of LNG was expected to land at Hazira by June, but the spokeswoman said LNG could be supplied to Dabhol only after pipelines connecting import facilities to the power plant were built by December.
The GAIL spokeswoman said talks had been held with the Qatar government in March to supply LNG to India and the talks were led by India's petroleum secretary M.S. Srinivasan and attended by officials from the oil ministry, GAIL and Petronet.
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