IOC, GAIL tie-up with Adani firm; equity option in Dhamra LNG

NEW DELHI: State-owned Indian Oil and GAIL (India) Ltd have inked a pact with Adani Enterprises firm Dhamra LNG Terminal to reserve regasification capacity at Dharma Terminal for supplying gas in the east.

As per the agreement, Indian Oil and GAIL would also have the option to hold equity in DLTPL at a later date.

"State-run Indian Oil and GAIL (India) Ltd have signed MoU with Dhamra LNG Terminal Private Limited (DLTPL), a Company owned by Adani Enterprises Limited," GAIL said in a statement.

As per the terms of MoU, Indian Oil and GAIL would reserve regasification capacity in the Terminal to supply regasified LNG in the emerging gas markets in the eastern part of the country.

DLTPL's project will be an onshore LNG regasification terminal having initial capacity of 5.0 MTPA, at Dhamra Port in Bhadrak district of Odisha. Dhamra is an all-weather deep water port.