India's gas transmission and distribution company GAIL has signed a long-term agreement with the Adani Ports and Special Economic Zone (APSEZ) for regasification services on a use or pay basis to GAIL’s upcoming LNG import terminal at Dhamra in Odisha (India). As per the contract, GAIL will book 1.5 Mt/year (2 bcm/year) of LNG for a 20-year period and will supply gas to its customers in eastern India and to the Jagdishpur-Haldia gas network, which is currently under development.
The 5 Mt/year (6.75 bcm/year) Dhamra LNG terminal is being built by IOC, GAIL and Adani at a cost of RUP 6,000 crore (US$900m). Construction started in July 2017 and the terminal will be commissioned in mid-2021; it may later be expanded to 10 Mt/year. It will import LNG from the United States and Qatar. Along with the liquefaction facility, a 2,539-km gas transport network worth RUP 130 bn (US$1.95bn) will be built to connect the LNG terminal to 13 districts in Odisha. Dhamra LNG will supply cities and industries, including three Indian refineries in Barauni, Haldia and Paradip.