Shell to sell surplus LNG in India

Royal Dutch Shell is looking for liquefied natural gas (LNG) in Oman, Qatar, Malaysia and Australia for sale in India.

Shell does not plan to have a long-term agreement for sourcing LNG for Hazira. It will redirect to India surplus cargoes from liquefication projects run by it and its partner Total of France in the West Asia and South East Asia.

"Our port at Hazira (in Gujarat) is ready and we would be beginning commissioning work of the LNG facility from December. These will take a few weeks to a couple of months (to complete). We hope to begin commercial sales of regassified LNG from the end of the first quarter of 2005," Shell India gas and power director Marc den Hartog said on the sidelines of a conference here today.

Shell would bring in natural gas in liquefied form to the Hazira port and sell it after regassifying it. Total has 26 per cent stake in the 2.5 million tonnes per annum Hazira LNG project and has equity in a liquefication plant in Qatar. Shell and Total are also stakeholders in a plant in Oman.

Shell has equity in Malaysia and Australia. Abu Dhabi and Indonesia are also potential LNG suppliers. "All these projects have surplus LNG and we can import LNG for Hazira from these," he said.

"Contracts for the sale of regasified LNG are now being matured and we intend to secure the first Hazira customers shortly," Hartog said.

Hartog said Shell was offering potential customers differential pricing with the price in summer being lower than in winter when there is increased demand by western countries for heating requirements.