Petronet LNG Reduces Regasification Tariffs for Gail at Dahej Terminal Ahead of 2026 Capacity Expansion
Petronet LNG has reduced regasification tariffs for Gail at the Dahej LNG terminal by 25%, lowering the rate to Rs52.05/mn Btu ahead of a capacity expansion set for March 2026. This move, which comes in response to regulatory criticism over high costs, aims to boost LNG imports and support India's goal of increasing the natural gas share in its energy mix to 15% by 2030. The terminal has maintained a 92% utilization rate from April to October, the highest in India.
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Petronet LNG has offered a 25% discount on regasification tariffs to Gail at the Dahej LNG terminal, reducing the rate to Rs52.05/mn Btu from Rs66.06/mn Btu ahead of the terminal's expanded capacity commissioning in March 2026. The new rate is below the projected Rs69.36/mn Btu for 2026.
Gail has booked 1.5mn t/yr of LNG capacity at Dahej, which has a total capacity of 17.5mn t/yr, with 8.5mn t/yr under long-term contracts with QatarEnergy. Petronet plans further reductions in regasification rates starting in 2028.
The tariff cuts are a response to criticism from the PNGRB regarding high regasification costs. The Dahej terminal's utilization was 92% from April to October, the highest in India. Lower tariffs are expected to enhance LNG imports and support India's goal of increasing the natural gas share in its energy mix to 15% by 2030.
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