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Delays dog Dabhol's LNG terminal

August 10, 2006 16:10 IST

The $3-billion Dabhol power project in Maharashtra is facing delays in completion of the LNG receipt terminal, Minister of State for Petroleum and Natural Gas Dinsha Patel said on Thursday.

"The commissioning of the LNG receiving terminal... has been delayed," he said in a written reply to a question in Lok Sabha.

State-run gas utility GAIL (India) Ltd, which along with National Thermal Power CorporationĀ is the new owner of the project, had earlier felt there was no need for building a breakwater at the port and estimated completion of the 85 per cent complete LNG import and regassfication facility by 2007.

However, without the breakwater, ships carrying LNG cannot dock at the port for almost 90 per cent of the time. Now, the need to build breakwater has been emphasised by technical consultants and the facility would now be built by 2009.

Patel said GAIL was in the processing of tying up long-term LNG supplies.

"GAIL is laying Dahej-Uran pipeline and Dabhol-Panel pipeline, with a view to supplying natural gas to Ratnagiri power project from Dahej LNG terminal (of Petronet)," he said.

The two pipelines would be commissioned by March 31, 2007, he said, adding that Petronet LNG Ltd, who owns the Dahej LNG terminal, was in the process of tying-up short-term LNG supplies for the project from Qatar.

The short-term LNG supplies, one-and-half-years, would be replaced by GAIL's long term contract.

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