Indian LNG importer Petronet LNG is planning to increase the capacity of its Dahej terminal in Gujarat, India, by 29% to 22.5 million tpa.
Reuters reports that the company’s chief executive, A K Singh, told a press conference that the expansion work at the terminal, which currently has a capacity of 17.5 million tpa, will take place in two phases. The first phase, to add 2.5 million tpa, will take place within 3–4 years
Singh said that the expansion work is necessary to meet growing demand. The current share of gas in India’s energy mix is 6.2%, but India’s prime minister Narendra Modi wants to increase this to 15%. Singh said this would require a four-fold increase in gas consumption, and Petronet LNG is also seeking to build a new terminal on India’s east coast. Petronet is seeking flexible 10-year gas import contract to meet the demand, rather than standard 25-year contracts.
Singh also told reporters that Petronet’s 5 million tpa terminal in Kochi in southern India is set to operate at 30% capacity by the end of the year, from 20% now, as more customers link to its gas pipeline. A pipeline linking the facility to India’s national grid will increase capacity use to 80% once it is completed.