Petronet LNG's Dahej terminal that commenced operations in April 2004 is likely to operate on full capacity by early 2005.

The current operating capacity is 2.5 million tpa that would stand enhanced to 5 million tpa (20 mmscmd) once the second LNG carrier, "Rahi", is delivered to Petronet on 16 December 2004.  The special LNG carrier with a capacity of 1.38 lakh cu.m. is being built by Daewoo Shipbuilding & Marine Engineering Co of South Korea, at an approximate cost of Rs.700 crore.

Very optimistic of domestic natural gas demand, Petronet LNG is confident of raising the capacity of the terminal to 10 million tpa by 2008. This expansion would entail an investment of Rs.800 crore. The 5 million tpa terminal was constructed at a cost of Rs.2,400 crore.

It may be mentioned that the first LNG carrier, "Disha", was handed over to Petronet LNG on 9 January 2004.

Meanwhile, the board of Petronet LNG is scheduled to meet on 29 October 2004 to take a final decision on setting up a 2.5 million tpa LNG terminal at Kochi. If a decision to implement the project is taken, Gail (India) would commence work on the Kochi-Mangalore-Bangalore trunk pipeline to facilitate evacuation of re-gassified LNG. In the case of the Dahej terminal, evacuation is done largely through the Dahej-Vijaipur pipeline with an onward connection to the HBJ pipeline.