GAIL India Ltd, India’s largest state-run gas utility, has reportedly decided to shut its liquefied natural gas (LNG) terminal at Ratnagiri until the end of September, as part of a move to reduce imports due to a drop in demand.
GAIL reportedly intends to reduce imports by about 10-20 percent. The company’s decision to cut imports is in line with the government’s aim to reduce India’s reliance on imported energy sources.
The company has already reduced the number of LNG cargoes it has imported since April as the coronavirus pandemic has severely curtailed gas demand. This has resulted in an accumulation of gas in storage tanks at the terminal.
The company has also reportedly cut the number of vessels it is chartering to import LNG. GAIL was the first Indian company to sign a long-term LNG import contract and the Ratnagiri terminal was its first.