The Hindu Business Line : India invites Qatari investments in hydrocarbon sector

AGGRESSIVELY pushing for Indian companies in the highly competitive and price sensitive hydrocarbon sector, Mr Mani Shankar Aiyar, Minister for Petroleum and Natural Gas, said that he has invited Qatari investments in this sector.

India has invited Qatari investments in proposed projects like one at Bhatinda of Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd's (BPCL) projects at Bina and Allahabad.

After his meeting with the visiting Deputy Prime Minister and Minister of Foreign Affairs of Qatar, Sheikh Hamad Bin Jassem Bin Jabor Al Thani, here on Friday, Mr Aiyar told presspersons that Qatar has agreed in-principle to hike the supply of liquefied natural gas (LNG) from the current 5 million tonnes. India is targeting import of 20 MT of LNG from Qatar by 2015.

"If we have 20 MT of LNG by 2015 from Qatar, then one-third of our LNG needs would be met by that country," he said.

Further, India proposes to chalk out an action plan for working out a strategic partnership with Qatar for the hydrocarbon sector. The Minister was hopeful that by May, Qatar would be receiving a high-level Indian delegation for the purpose.

India also plans to enter into an engineering consultancy and general services agreement with Qatar for the hydrocarbon sector. For this the Ministry of Petroleum proposes to do a rejig in the state-owned Engineers India Ltd (EIL), in order to actively involve the petroleum companies in its projects.

For promoting Indian investments in Qatar, the Minister said the Government would provide required support to companies willing to invest in Qatar. He also informed that the Qatar government would facilitate such investments. When asked whether the oil firms — both private sector companies and public sector — would be allowed to strike the joint ventures on their own, the Minister only said that the Government would not restrict the private sector participation in Qatar.

Apart from importing LNG, India was also concerned over ensuring the entire hydrocarbon value chain. Mr Aiyar indicated that state-run Mangalore Refinery and Petrochemicals Ltd (MRPL) is likely to import 0.5-1.0 million tonnes of crude oil from Qatar. "We have agreed in principle that MRPL will pick up 0.5-1.00 million tonnes of Qatari crude. Commercial negotiations are to be initiated," he said.

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