The Hindu Business Line : Petronet looking for more LNG from Qatar

"We are looking for a substantial increase in the supply of LNG from the existing level of 5 million tonnes from Qatar," Mr S. C. Mathur, CEO and MD of PLL said.

Qatar, which is expected to become an LNG hub in the coming years, can be a major supplier for India, which has deficit of LNG and is looking for additional supply, he said. Qatar currently supplies 5 million tonnes of the gas per annum to PLL's Dahej terminal. The West Asian country will begin supplies of an additional 2.5 million tonnes per annum of LNG to PLL's upcoming Kochi terminal from June 2008.

PLL has a 25-year contract with Qatar for the supply of LNG. India started importing Qatari gas last year, but it had clinched the price with state-owned, Rasgas, in 1999. The country is receiving natural gas from Qatar roughly every fourth day at a price, which is cheaper than its own production sources.

LNG from Qatar after regasification costs $3.37 million British thermal unit (mbtu), which is about 17 per cent cheaper than gas being sold by the consortium operating in the Panna, Mukta and Tapti fields.

The first foreign gas, which was available to India, was from Qatar at PLL's Dahej terminal.

In fact, PLL plans to expand capacity at Dahej to 10 million tonnes from the present 5 million tonnes and Kochi terminal from 2.5 million tonnes currently to 5 million tonnes in future. During the state visit of the Emir of Qatar, India would be seeking additional quantities of LNG to meet the future requirements.

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