Ratnagiri gas firm to be split

Mumbai: The cash-strapped Ratnagiri Gas and Power Private Limited, which has been operating the controversial Dabhol power project, will be split, and GAIL India will run the gas terminal at Dabhol in Ratnagiri district. 

The first liquefied natural gas (LNG) shipment from the US arrived at the Dabhol terminal of state-run gas major GAIL on Friday. The Dabhol terminal will serve industrial and residential customers in Karnataka, Maharas-htra and Gujarat, said Union oil minister Dharmendra Pradhan on Saturday.

Ratnagiri Gas and Power generates 500 MW of power for Railways at Rs 5.50 per unit hence the government had decided to split the company.

While one part will operate the gas terminal which will be under GAIL India, the other one will generate power under the NTPC.  Receiving the first-ever shipment of 1.2 lakh tonne LNG under the long-term contract of 20 years, Mr Pradhan announced Rs 700-crore investment by the GAIL arm, Konkan LNG. The company will be getting 22-24 shipments per annum till the breakwater is built after which it will receive 80-90 shipments, sources said. 

Mr Pradhan said the beginning of the oil and gas shipments from the US would boost Indo-US trade and has the potential to raise it by $2-3 billion annually, considering massive spike in energy demand, making the country third largest consumer in the world.