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GAIL authorised to bid for Dabhol LNG terminal

The Centre has given the green signal to state-owned Gas Authority of India Limited to bid for the LNG terminal of troubled Dabhol Power Corporation located in Maharashtra.

The chairman of GAIL, Prashanto Banerjee, said in Calcutta on Friday that the energy PSU would immensely benefit if it could acquire the LNG import terminal of DPC located on the western side of the Indian coastline.

The GAIL chairman declined to reveal the price at which it would be willing to buy out the LNG terminal, saying that the company was "looking forward to a bargain price".

Other parties who have shown interest in buying out the DPC's LNG terminal are Shell and British Gas.

Asked whether GAIL was waiting for the crisis-ridden DPC to make a distress sale, Banerjee said that looking at the general condition of US energy trader Enron, the bankrupt promoter of DPC, it is expected that GAIL would be expecting nothing less than a competitive price.

If GAIL was able to buy out the terminal, then it would be able to supply two million units to the industries in Maharashtra and the balance three million units to the rest of the country, Banerjee said.

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