Adani Total Dhamra terminal expansion is not imminent, CEO claims

Adani Total, an Indian joint venture, has not yet conducted feasibility studies for doubling the capacity of the LNG terminal at Dhamra. Chief Executive Surjeet S. Lamba said this on Thursday. This comes a year after Adani Total announced that it was planning to expand its terminal.

Lamba stated that the 5 million tonnes per annum (mtpa), LNG terminal in India's East Coast, where TotalEnergies SE, a French energy giant, has a 50% share along with the Adani Group in 2024, would operate at an average utilization rate of 25%.

The CEO stated that the usage has risen from about 30% to 50%. The terminal's low usage is due to the fact that it has not been able to attract new clients after state-run companies Indian Oil Corp and GAIL (India) Ltd were locked into 20-year contracts of take-or pay in 2023.

Lamba said that the expansion would depend on the demand. When asked about the possibility of growth in LNG, he referred to the Prime Minister NarendraModi's goal to double natural gas's share to 15% by 2030.

He said, "It all depends on the requirements of the users. We will know when there is a business opportunity."

Lamba said on the sidelines India Energy Week that "once feasibility (study is done), only then will we be able comment on this (expansion)."

He has not commented on his financial plans.

TotalEnergies announced last year that it would stop investing in the Adani Group, after U.S. authorities accused the conglomerate's officials, including billionaire Gautam Adani as corrupt.

(source: Reuters)