State-run Gas Authority of India Ltd (GAIL) is set to operate its 5 million tonnes per annum (MTPA) Dabhol LNG import terminal in Maharashtra during the monsoon season for the first time, following the completion of a critical breakwater facility. This development marks a major operational milestone as the company awaits formal approval for all-weather terminal status, expected within a week.
“We have applied for an all-weather terminal status and will accordingly schedule LNG cargoes,” said GAIL Chairman and Managing Director Sandeep Kumar Gupta at a post-earnings press briefing on Tuesday.
GAIL Recieves Bids from US-Based firms
In a parallel development, GAIL has attracted five bids from US-based firms for acquiring up to 26% equity in its US LNG project. The stake sale includes a 15-year LNG import agreement. GAIL’s Director (Business Development) Rajeev Kumar Singhal confirmed strong interest but did not disclose bidder identities. The move aligns with India’s broader aim of diversifying energy sources and reducing trade imbalance with the US.
Highlighting the economic viability of US LNG, Gupta said, “At Henry Hub gas prices of USD 3.5–4 per mmBtu, importing LNG from the US is viable for India.” India currently imports nearly half of its natural gas needs and is the world’s fourth-largest LNG buyer.
Transfer of Key Geographical Areas to GGL
GAIL also announced the planned transfer of six key Geographical Areas (GAs) — Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, and Cuttack — from GAIL to its CGD subsidiary, GAIL Gas Limited (GGL), pending government approval. The move aims to consolidate operations and improve efficiency in the city gas distribution business.
On capital expenditure, GAIL spent ₹10,512 crore in FY2024-25 and expects similar spending in FY2025-26, allocating ₹3,000–4,000 crore each for petrochemicals and pipeline development, with additional investment in CBG and CGD initiatives.
About GAIL
GAIL (India) Limited is an Indian state-owned energy corporation with primary interests in the trade, transmission and production distribution of natural gas. GAIL also has interests in the exploration and production solar and wind power, telecom and telemetry services (GAILTEL) and electricity generation.
