Petronet keen on long-term contract with Aussie firm

Petronet LNG (PLL) is keen to enter into a long-term contract with North West Shelf (NWS) of Australia, which quoted about $7 per million British thermal unit (mbtu) for the liquefied natural gas (LNG).

P Dasgupta, managing director and CEO, said that the company is in dialogue with the Australian firm to meet the future LNG requirements.

"We have discussed with LNG suppliers of Oman, Qatar and Malaysia also for long-term contract. All the suppliers have quoted their price and the decision will follow soon. Petronet is keen to source more LNG from Oman and Qatar," he added.

Oman LNG has already assured to give 0.6-0.8 million tonne (MT) LNG in 2006, 1.0-1.2 MT for 2007 and 1.6-1.8 MT annually from 2008.

PLL, which started operations at Dahej in 2004, imported 2.5 MT of LNG in the year till March 2005, and has tied up for 5 MT of imports this year. India is able to supply only half of its gas demand of 170 million cubic metres a day.

"The company is planning to raise its base capacity for imports to 17.5 MT at two terminals at Dahej and Kochi by 2014. Now the capacity is 2.5 MT. Of this 17.5 MT, Dahej will have 12.5 MT and Kochi will add 5 MT to it," Dasgupta pointed out on the sidelines of India LNG 2006 conference.

"Kochi terminal work is moving faster as per the schedule and it will be completed by June 2009. However, the initial plan is to operate the terminal at a capacity of 2.5 MT. Dahej initial expansion plans of 10 MT storage will be completed by 2010," he said.