Adani Ports and Special Economic Zone (APSEZ), part of the Adani Group, signed a long-term deal to provide LNG regasification services at its Dhamra LNG terminal to the state-run gas utility GAIL.

Liquefied natural gas regasification services will be provided on a use or pay basis, APSEZ said in its statement.

As per the contract, GAIL has booked 1.5 million tonnes per annum (mtpa) regasification capacity for a period of 20 years.

GAIL plans to supply the gas to its portfolio of customers located in the eastern region and along the Jagdishpur– Haldia gas grid currently under development.

“This project is now close to being fully subscribed,” APSEZ CEO Karan Adani said, adding that “it will also become a hub for supply to Bangladesh and Myanmar.”

The foundation stone of the project was laid on July 17 and construction has commenced by Larsen & Toubro, on setting up the tanks for gas storage and by CTCI Corporation, a Taiwanese firm, that has won the contract for the regasification package.

The terminal is expected to be commissioned during the second half of 2021.

The proposed Dhamra LNG import terminal is designed for an initial capacity of 5 mtpa, expandable up to 10 mtpa. Initially, it will have two full containment type tanks of 180,000 cubic meter capacity each.

It will be first of its kind in India and second LNG terminal on the east coast after IOC’s Ennore terminal in Tamilnadu, APSEZ said in its statement.

It will have a jetty capable of handling a wide range of LNG supply vessels, including the largest Q-max fleet.

The terminal will also be capable of reloading LNG to service proximate markets via the marine route and will also have truck loading gantries to help grow the LNG-by-truck market.