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GAIL operates Dabhol LNG terminal in monsoon for the first time, receives LNG ship

New Delhi, Jun 6 (PTI) India's biggest gas utility GAIL has started operating its 5 million tonnes a year liquefied natural gas (LNG) import terminal at Dabhol in Maharashtra at full capacity as it received its first ever cargo at the facility during monsoon. The company had to shut the Ratnagiri terminal, popularly known as the Dabhol LNG plant, for four months from May 25 each year to avoid high swell in the sea damaging ships or the jetty while berthing. The firm has now completed building a breakwater to guard the ships during the monsoon season. "GAIL (India) Limited has successfully berthed and discharged its first LNG vessel at the Dabhol LNG terminal following the completion of the landmark breakwater project," the company said in a statement. The vessel, GAIL Bhuwan, was received on June 2, 2025, by GAIL Chairman and Managing Director Sandeep Kumar Gupta and GAIL Director (Marketing) Sanjay Kumar, marking the commencement of uninterrupted, round-the-year operations at the terminal. Gupta had last month stated that the breakwater was complete and the company had applied for an all-weather terminal status with the authorities. The approval has now come, allowing the import of LNG during the monsoon period as well. "With the commissioning of the breakwater after receipt of all statutory approvals, Dabhol LNG terminal has now been designated an all-weather port which is a critical transformation that ensures safe and reliable LNG operations even during the Southwest monsoon, traditionally a challenging period for marine logistics on India's west coast," the statement said. Natural gas extracted from below ground and the seabed, when cooled to a liquid state at around minus 162 degrees Celsius turns into liquid. Gas in this form, called LNG, can be easily stored and transported in ships. At the receipt terminal, LNG is warmed back into gas, which then is piped to power plants for generating electricity, to fertiliser units for making urea, or sold to city gas for turning into CNG or piped cooking gas. India is aiming to raise the share of natural gas in the country's energy basket to 15 per cent from the current 7 per cent by 2030. With its lower emissions, gas is considered a transition fuel as the country migrates to a net zero scenario by 2070. Dabhol Power Company (DPC) of now a bankrupt US energy giant Enron, was formed for setting up a power plant in Maharashtra. Construction started in 1992, and the first phase of 740 MW (Naphtha based) was commissioned in May 1999. The construction of Phase-II of the power plant and an LNG import terminal started and was due for completion in late 2001. But due to various controversies, the project was stalled. Enron's bankruptcy led to the company abandoning the project altogether. To rescue the asset, the government in 2005 formed a special purpose vehicle (SPV), called Ratnagiri Gas and Power Private Limited (RGPPL), with the participation of GAIL, power producer NTPC, MSEB Holding Company Limited and Indian financial institutions to take over the assets of the erstwhile Dabhol Power Company (DPC) and revive the abandoned project. The project consists of a power block of 1967 MW and LNG Terminal of 5 million tonnes per annum capacity. The RGPPL integrated plant (power block and LNG terminal) was not creating value. And subsequently, the power plant and LNG terminal were separate, with NTPC operating the power plant and GAIL operating the LNG facility. "Strategically located on the Maharashtra coastline, the Dabhol LNG terminal serves as a vital link in India's gas supply network via the Dabhol-Bangalore and Dabhol-Panvel cross-country pipelines," the GAIL statement said. Dabhol is an island breakwater (unlike conventional land-connected structures) showcasing a feat of advanced marine engineering. "This ambitious project, involving extensive collaboration among multiple stakeholders, posed complex technical challenges and required innovative, customised solutions," it said. "The successful commissioning of the breakwater is expected to significantly enhance vessel accessibility and improve capacity utilisation at the terminal, bolstering energy infrastructure and supply reliability." This achievement comes at a crucial time as GAIL looks to expand the terminal's capacity from 5.0 million tonnes per annum to 6.3 million tonnes in the first phase over the next three years. Once expanded, the terminal is expected to handle up to 100 LNG cargoes annually, thereby playing a pivotal role in reinforcing India's energy security, it added. PTI ANZ DR

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