GAIL India Commits $63 Million to Build Heating Unit at Ratnagiri LNG Terminal

State-owned natural gas company GAIL India is investing 6 billion rupees, approximately $63.1 million, to build a dedicated heating unit at its Ratnagiri liquefied natural gas (LNG) terminal. The announcement was made by the company's business development director, R. K. Singhal, while speaking to reporters at an industry event on Wednesday.

According to the company, the new facility is scheduled for completion by June 2027. Once operational, the heating unit will enable GAIL to run the Ratnagiri LNG terminal at its full design capacity of 5 million tons per annum.

Presently, the facility is operating at roughly 50 percent capacity because the necessary heating unit is not yet ready. Singhal explained that the Ratnagiri facility previously relied on waste heat from a nearby power plant operated by another entity to gasify the super-chilled fuel. However, that external power plant is no longer functional, necessitating the new infrastructure development.

In addition to the primary heating unit, GAIL is also constructing a small-sized captive power plant. This auxiliary plant will be utilized to generate the required heat for the liquefied natural gas facility independently, ensuring a steady and reliable gasification process once the project is finished.

"Infrastructure bottlenecks can significantly constrain operational efficiency, as seen with GAIL's Ratnagiri terminal operating at half its capacity due to reliance on an external power source. By investing in a dedicated captive power plant and heating unit, the company is taking a practical step to secure its supply chain and achieve full operational capacity. For energy and infrastructure enterprises, building self-sustained operational capabilities is critical to mitigating external dependencies and ensuring long-term asset utilization." — Dr. Shishir Gupta, Founder & CEO, StartupLanes