Alaya Legal

Regasification Terminals on “Tolling Model” in India – Contractual Issues

Home / Articles

Regasification Terminals on “Tolling Model” in India – Contractual Issues

Date Oct–Dec 2017
Author Sunil Gupta
Publication Name The Federation of Indian Petroleum Industry (FIPI)

Abstract

India is one of the major growing economies in the world. To sustain the growth rate of its Gross Domestic Product (GDP), India requires an environmentally friendly and economically viable energy supply. Natural Gas is one such potential source of energy.

With stagnant domestic gas production and limited future prospects, Liquefied Natural Gas (LNG) imports are required to bridge the demand-supply gap.

Accordingly, there is a need for commensurate LNG import infrastructure in the country. Several LNG regasification terminals have been planned or announced in India.

While some terminals, such as Ennore of Indian Oil Corporation Limited (IndianOil), are planned on a “Merchant Model” where the terminal operator sells Regasified LNG (RLNG) to consumers, other terminals such as Mundra Terminal are likely to operate on a “Tolling Model”, where the terminal operator functions only as a service provider.

It is easier to obtain project finance for projects under the “Tolling Model” based on firm “Use or Pay” capacity agreements with creditworthy shippers.

Read More →

Avatar

alayalegal

Most Recent Posts

Reach out

Category

Tags

Disclaimer

The Bar Council of India Rules do not permit law firms to solicit work or advertise. By clicking the ‘I Agree’ button, the Reader accepts that they are seeking information on their own accord. Alaya Legal shall in no way be responsible for any technical inaccuracies on this website, or for any actions taken or not taken based on the information contained herein or accessed through this website. Readers are advised to seek counsel from a qualified professional while dealing with specific issues.

By continuing to use this site, you consent to the use of cookies on your device as mentioned in this Cookie Policy .

The views appearing under various sections, including ‘Trending’, are solely those of the respective author. The author may be contacted by writing to Alaya Legal at contact@alayanew.instantlywebsite.com .

Nothing contained on this website shall be construed as legal advice. Readers are encouraged to obtain independent legal counsel for advice relating to their specific circumstances.