GAIL (India) Ltd and IndianOil have signed a Memorandum of Understanding (MoU) with Dhamra LNG Terminal Private Ltd, owned by Adani Enterprises Ltd.
Dhamra LNG Terminal Private Ltd is planning an onshore LNG regasification terminal to be located at Dhamra Port in Bhadrak district of Odisha, India. The LNG project will have an initial capacity of 5 million tpy.
Under the terms of MoU, IndianOil and GAIL would reserve regasification capacity in the LNG terminal to supply regasified LNG in the emerging gas markets in the eastern part of the country. IndianOil and GAIL would also have the option to hold equity in Dhamra LNG Terminal Private Ltd at a later date.
Edited from press release by Callum O'Reilly