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GAIL’s asset base goes up by 20% with transfer of assets to Ratnagiri Gas and Power

Mumbai, October 03, 2005 

On 1st October 2005, the Bombay High Court has passed an Order paving the way for the transfer of assets of the erstwhile Dabhol Power Company to Ratnagiri Gas and Power Private Limited (RGPPL), the joint venture company promoted by GAIL and NTPC. 

With this transfer, the asset base of GAIL including the pro-rata share of all the joint ventures, subsidiaries and associates where GAIL has equity participation has increased by around 20% from Rs. 14,700 crore to Rs. 17,500 crore. As a promoter of RGPPL, GAIL’s primary role is to source the LNG required to run the power plant and in this regard, GAIL is engaged in discussions with prospective suppliers in various countries. GAIL is also facilitating completion of the balance erection works of LNG terminal and will, thereafter, operate the terminal. 

The capacity of the LNG terminal is 5 MMTPA, of which only 2.1 MMTPA is required by the Power Plant. GAIL will use the balance regasification capacity of 2.9 MMTPA available at the terminal to directly import LNG and regasify the same before undertaking merchant sales of such regasified LNG in the catchment gas markets in Maharashtra which is currently supply constrained. 

The total estimated gas demand in Maharashtra is of the order of 35 MMSCMD out of which the current availability is of the order of 9 MMSCMD. A similar shortage of power also exists in Maharashtra and in view of such demand-supply gaps in the availability of power and natural gas, capacity of the LNG terminal as well as that of the power plant of RGPPL is expected to be expanded in the short term. 

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