Petronet to Lease Out Two-Third Capacity of Dahej LNG Terminal

Petronet LNG is looking to lease out about two-thirds of the capacity at its Dahej import terminal in the western Indian state of Gujarat over the next four years, reported news agency Reuters.

The company hopes this moves will boost revenue and prevent the facility falling into disuse.

In April-June the 10 mtpa Dahej terminal operated at 98.4 percent capacity despite poor demand for its costly Qatari LNG, Reuters said.

Petronet buys 7.5 mtpa of LNG from RasGas under the long-term deal, and has leased 1.25 mtpa of capacity to state-run GSPC Group in Gujarat.

It has also signed deals to lease out 6 mtpa of capacity to state-run firms by 2017, when the capacity of the plant will be raised to 15 mtpa, the news agency reported.

Petronet LNG is in talks with various companies to lease out 2.5 mtpa of capacity to be added in the

Reuters on Thursday reported that Petronet has been forced to cut purchases under the long-term Qatar deal by 30 percent due to low domestic demand.