Dabhol Terminal: First cargo of LNG to be received in December, 2010

Ratnagiri Gas and Power Project Limited (RGPPL) is expected to receive first cargo of LNG at its Dabhol terminal in December, 2010. The 5-MMTPA terminal is now "mechanically complete" and the contractors executing the regasification facility and Port and Marine Services (PMS) have been sounded by RGPPL to commission the terminal in a period of 90 days. 

However, since dredging and construction of breakwater facility is not yet complete, the terminal will be commissioned through smaller ships thereby leading to only 30% to 40% capacity utilisation. 

For the time being, commissioning of the terminal will be achieved through spot cargoes and thereafter, LNG will be sourced through regular tie-up for which discussions are already underway with four parties. 

Meanwhile, dredging work at the Ratnagiri Port is at a standstill as a clearance from the environment ministry is still awaited for carrying out "rock dredging." Furthermore, the contract for carrying out rock dredging is yet to be awarded. The same is likely to be awarded by middle of October, 2010. Thereafter, the contractor will require a period of six to seven months to complete dredging activities. 

It may be recalled that RGPPL had initially lined up Gammon India Limited in November, 2009, for executing the dredging work. However, the contract with Gammon was soon annulled as the contractor failed to fulfill its contractual obligations. Subsequently, the work was handed over to Dredging Corporation of India (DCI), but the same could not materialise as the PSU contractor was equipped only for carrying out soft dredging and not for rock dredging.