Lok Sabha Question No. 17 (STARRED), answered on 2019-11-18
Subject: Dhamra LNG Terminal
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Mahua Moitra

## LOK SABHA STARRED QUESTION NO. 17 TO BE ANSWERED ON 18.11.2019

## Dhamra LNG Terminal

## *17. SHRIMATI MAHUA MOITRA:

## पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a) whether the Gas Authority of India Limited (GAIL) and Indian Oil Corporation Limited (IOCL) have booked capacity or signed Memorandum of Understanding to book capacity in Dhamra LNG Terminal belonging to a private entity;

(b)  if  so,  the  details  of  the  annual  financial  payment  made/to  be  made  by  GAIL  and  IOCL  towards Dhamra LNG Terminal along with the details of annual escalation in payment, if any;

(c) the price comparison of terminal charges, vessel related charges, port charges and any other charges between Dabhol, Ennore and Dhamra along with the details of port charges as compared to the charges at Paradip Port;

(d) whether any tender process was followed, if not, whether it is permissible to proceed without tender; and

(e) whether GAIL and IOCL possess financial and technical capability to build their own LNG terminal given that both companies have their own LNG Terminals and if so, the details thereof?

## ANSWER

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री ( श्री धमेन्द्र प्रधान )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) to (e):  A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (e)  OF  THE  LOK SABHA STARRED QUESTION NO.*17 ASKED BY SHRIMATI MAHUA MOITRA, M.P. TO BE ANSWERED ON NOVEMBER 18, 2019.

(a) & (b)          Gas Authority of India Limited (GAIL) and Indian Oil Corporation Limited (IOCL)  both  have  booked  capacity  by  signing  a  Tolling  Agreement  with  Dhamra  LNG Terminal Pvt.  Ltd.  GAIL  and  IOCL  are  yet  to  bear  any  annual  financial  payment  towards Dhamra LNG Terminal. Subsequent to the commissioning of terminal, GAIL & IOCL have agreed  to  pay  the  tolling  charges  of  Rs.  60.18  per  MMBTU  for  re-gas  facility  at  Dhamra LNG terminal with annual escalations in line with their respective contractual provisions.

(c)         GAIL has also informed that the regasification charge for Dabhol LNG terminal is Rs.49.28 per MMBTU applicable for the year 2019. In addition, there are other charges viz. terminal charges, vessel related  charges,  port  charges  or  any  other  port  related  charges  for utilization  of  Dabhol  LNG terminal.  IOCL has informed that the regasification charges for Ennore is Rs. 57.38 per MMBTU applicable for FY 2019-20.

It  has  been  informed  that  the  regasification  charge  for  Dhamra  Terminal  is  Rs.  60.18  per MMBTU for the first contract year (year of commissioning) which is likely to be in FY 202122.  The  regasification  charges  for  Ennore  and  Dhamra  terminals  are  inclusive  of  terminal charges, vessel related charges, port charges or any other port related charges. There is no LNG storage and regasification Terminal at Paradip Port.

(d)       GAIL has executed a Tolling Agreement inline with its procedures to meet the supply commitments  of  customers  located  in  the  eastern  parts  of  the  country  along  JagdishpurHaldia/Bokaro-Dhamra  Pipeline  (JHBDPL)  project.  IOCL  has  also  booked  capacity  at Dhamra Teminal  after  considering  its  captive  requirement  of  Paradip,  Haldia  and  Barauni refinaries.  The booking of regas capacity is being done after protracted techno-commercial discussions with the promoters of Dhamra LNG Terminal and after considering location of terminal, availability of gas evacuation pipelines, affordability of regasification charges and capturable demand in the catchment area.

(e)        GAIL  and  IOCL  have  both  technical  and  financial  capability  to  develop  their  own LNG terminal. GAIL has equity stake in Konkan LNG Private Limited and is the owner's engineer as well as the operator of this terminal at Dabhol. IOCL has recently commissioned a  5  MMTPA LNG Terminal through a Joint Venture Company at Ennore in March, 2019. Further, GAIL and IOCL also have equity stake in Petronet LNG Limited which is operating two LNG regas terminals, one at Dahej and the other at Kochi.