GAIL to sign LNG deal in three months: GAIL chairman

GAIL India is likely to sign a three-year deal within three months to buy up to 2 MT of LNG annually, chairman BC Tripathi said on Saturday. The 5 MTPA Dabhol LNG terminal in western India would be fed from the Gail supply. 

India the world's eighth-largest importer of LNG is likely to see those imports rise as much as five-fold in the next decade as domestic gas output tapered and demand surged.

"We are talking to various parties. We will decide on the deal in next three months," Tripathi told reporters at Asia Gas Partnership Summit. "It all depends on how successful are we in commissioning the terminal."

He added, a consortium of Indian companies which owned the Dabhol terminal was considering doubling the plant's capacity to 10 MTPA.

He gave no time frame on the decision to raise the capacity.

The Dabhol terminal, which is due to start later this month, would initially operate at 50 per cent capacity as the breakwater was not yet ready, he said.