OREANDA-NEWS. April 26, 2012. State-run gas utility GAIL India has suspended cargo operations at the nation's third liquefied natural gas (LNG) terminal at Dabhol after rough sea damaged marine fenders at the port.

A ship carrying maiden or the so-called commissioning cargo, which will be used to prepare the site for commercial operations, had to move to high seas after the fenders lining the jetty got damaged, sources privy to the development said.

The LNG carrier, called Excelerate, at the end of March brought a cargo from Statoil ASA Snohvit LNG plant in the Barents Sea off Norway.
It had offloaded barely 5-10% of the cargo when operations had to be suspended last week and the vessel shifted to anchor, they said.

Fenders, which are bumper used to absorb the kinetic energy of a berthing boat or vessel against the jetty, are being repaired.

Sources said the repair work may be completed in next couple of days after which the LNG vessel would again be brought to the jetty for offloading.

GAIL owns 31.52% stake in Ratnagiri Gas and Power Co Ltd -- the firm that owns the 1967 MW power plant and adjacent 5 million tonne a year LNG import terminal at Dabhol in Maharashtra. The power plant and LNG terminal were built by now bankrupt US energy major Enron Corp about a decade back.

There have been apprehensions about the safety of the plant since it had been shut for so long and GAIL is taking all precautions in commissioning the terminal. The pipelines, storage tanks and other system are one-by-one tested by lowering temperature to minus 160 degrees Celsius.

LNG is natural gas that has been liquefied at minus 160 degrees Celsius for ease of transportation in ships. Once received, LNG is re-converted into its gaseous state and transported through pipelines to users like power plants.

Sources said the Belgian ship brought the commissioning cargo of 138,000 cubic metres around March 25 and was to start offloading from March 28.

However, the offloading was delayed as the shallow navigation channel to the port kept the ship away from the jetty for almost three weeks.

Ratnagiri Gas and Power Co (RGPPL) took over Dabhol in 2005 after the Enron's bankruptcy. The LNG terminal was 70-80% complete when RGPPL took over the plant.

GAIL mechanically completed the plant in late 2010 and dredging work of the sea-channel leading to the Dabhol port was completed last year.

But since construction of breakwater facility is not yet complete, the terminal will be commissioned through smaller ships thereby leading to only 30-40% capacity utilisation.