Working ahead of times for an Energy secured India
GAIL has been continuously working towards creating sustainable value along the entire gas value chain. Securing additional LNG volumes for long term energy security of India is one of the major areas on which GAIL is working and in the year 2012 we have entered into some major LNG supply agreements with global companies. Gazprom and GAIL signed LNG purchase & sale contract that stipulates annual supplies of Russian LNG amounting to 2.5 million tonnes per year for a period of 20 years. GAIL also struck a LNG deal this year with Gas Natural Fenosa, Spain, for supply of about 3 billion cubic metres of LNG over the next three years.
GAIL had also entered a medium-term supply agreement with GDF Suez for sourcing 0.8 million tonnes of LNG from 2013 to 2014. This is in furtherance to our efforts of securing last year agreement with Cheniere Energy, USA for supply of 3.5 million tonnes per annum of LNG.
On the other hand, GAIL has also been substantially increasing its LNG import capacity. It has a stake in Petronet LNG Ltd, which is increasing its import capacity at the existing Dahej terminal to 15 million tons per annum and establishing new LNG import infrastructure at Kochi. GAIL also owns a major stake in the LNG terminal at Dabhol which will soon be commissioned.
Moreover, GAIL together with Andhra Pradesh Government and GDF Suez is working towards installing a floating LNG storage and re-gasification terminal near Kakinada. Planned to be operational by December 2013, this unit is expected to give a boost to power and other industries of the region.
With the ever-increasing popularity of natural gas as a preferred fuel across the globe, India is set to increase the percentage of power plants that are fuelled by gas.At present, natural gas produced domestically is not adequate to cater to the needs of electricity consumers including the non-priority sectors such as city gas distribution, ceramic and steel industries among others. GAIL has also set up a subsidiary in Singapore to create a well-diversified and secured supply portfolio to meet the ever growing energy requirements of the Indian economy and enable sustainable long-term growth