GAIL eyes up to 2m tonne/year LNG import deal.

GAIL India is likely to sign a three-year deal within three months to buy up to 2 million tonnes of LNG annually, Chairman BC Tripathi said on Saturday.

The gas will supply the 5 million tonne-a-year Dabhol LNG terminal in western India.

India is the world's eighth-largest importer of LNG and those imports could rise as much as five-fold in the next decade as domestic gas output falls and demand surges.

"We are talking to various parties. We will decide on the deal in next three months," Tripathi told reporters at Asia Gas Partnership Summit. "It all depends on how successful are we in commissioning the terminal."

He said a consortium of Indian companies which own the Dabhol terminal was considering doubling the plant's capacity to 10 million tonnes a year.

He did not specify when a decision on raising the capacity would be taken.

The Dabhol terminal, which is due to start up later this month, will initially operate at 50% capacity as the breakwater is not yet ready, he said.

India needs gas to help power electricity generation, its fertiliser sector, city gas distribution and for industries.

Source : moneycontrol.com