GAIL Eyes Doubling Capacity at Dabhol LNG Facility

GAIL (India) Limited has unveiled plans to significantly enhance the capacity of its liquefied natural gas (LNG) terminal located at Dabhol, Maharashtra.

The expansion initiative forms part of GAIL’s broader vision to tap into emerging opportunities in the gas market and bolster the nation’s energy infrastructure. Currently, the Dabhol LNG terminal boasts a nameplate capacity of 5 million tonnes per annum (mtpa), although operational constraints limit its utilisation to around 2.9 mtpa, particularly during the monsoon season. However, GAIL’s ambitious blueprint seeks to elevate the terminal’s capacity to an impressive 12 mtpa by the year 2030-31, with plans for phased enhancements over the coming years. To address seasonal operational challenges, the company is undertaking the construction of breakwater infrastructure, enabling uninterrupted operations even amidst adverse weather conditions. Furthermore, GAIL is strategically evaluating the establishment of new LNG import terminals across the country, recognising the pivotal role such infrastructure will play in meeting the escalating demand for natural gas. With approximately half of the current gas consumption in India being met through imports, the necessity for additional terminals becomes increasingly apparent, especially in light of the national objective to elevate the share of natural gas in the energy mix to 15% by 2030.

Despite the existing LNG import capacity of 48 mtpa, coupled with another 20 mtpa in the pipeline, industry experts assert that further expansion is imperative to achieve the nation’s energy goals effectively. The underutilisation of existing terminals underscores the need for synchronised efforts to bolster domestic demand and augment import volumes gradually. Of the seven LNG terminals operating in India, a significant proportion operates below optimal capacity, underscoring the untapped potential within the sector. GAIL’s strategic partnership with Petronet LNG Ltd, which operates the renowned Dahej terminal, further reinforces its commitment to driving growth and innovation in the LNG segment. As India embarks on a trajectory of accelerated economic development, GAIL’s ambitious expansion plans signal a proactive approach towards enhancing energy security and fostering sustainable growth in the gas sector. Through strategic investments and infrastructure upgrades, GAIL aims to position itself as a key player in India’s evolving energy landscape, driving economic prosperity and energy resilience in the years to come.