The Hindu Business Line : Shell set to revive GSPC gas supply deal

The GSPC Chairman, Mr Balwant Singh, confirmed that a high-level Shell team was meeting the Chief Minister, Mr Narendra Modi, to discuss a "long-term" gas supply deal.

Ahmedabad , Jan. 17

A MONTH after losing Gujarat State Petroleum Corporation (GSPC) as its lone customer for the Hazira Liquefied Natural Gas (LNG) terminal, Shell is set to sign a new deal with the State-owned company.

"We can confirm that Ms Linda Cook, Shell's Executive Director (Gas and Power), is coming to Gandhinagar on Wednesday to discuss a gas supply agreement with GSPC. We are in talks with several players for short, medium and long-term contracts to supply gas from Hazira," Mr Nitin Shukla, Group CEO, Hazira LNG and Ports, told Business Line on Tuesday.

When contacted, the GSPC Chairman, Mr Balwant Singh, confirmed that a high-level Shell team was meeting the Chief Minister, Mr Narendra Modi, to discuss a "long-term" gas supply deal.

Both Mr Singh and Mr Shukla were tight-lipped on the contours of the deal in terms of the gas quantity proposed to be supplied or the pricing.

Earlier this month, Shell India Chairman, Mr Vikram Singh Mehta, had said that the previous gas supply deal with GSPC had been "completed" and the Hazira terminal was not supplying any customer. The terminal was "fully operational" and could handle LNG consignments at short notice if demand arose, he had said.

The five million tonnes per annum Hazira terminal has been virtually idling since its inauguration last April and has handled just three consignments of LNG for GSPC. The state-owned company had stopped buying from the terminal in December 2005.