The Hindu Business Line : Petronet to source LNG from Australia

Powering supply
Petronet in talks with Qatar, Oman and Abu Dhabi for additional LNG.
It currently imports 5 million tonnes per annum of LNG from RasGas of Qatar and this volume will go up to 7.5 million tonnes in 2008.

New Delhi , July 13

The Petroleum Secretary, Mr M.S. Srinivasan, on Thursday said India is likely to sign a deal in September to import liquefied natural gas (LNG) from Australia.

Speaking on the sidelines of a conference on Australia-India oil and gas exploration acreage promotion, the Secretary said, "We have finalised import of 2.5 million tonnes per annum of LNG from Australia's Gorgon Project and expect to ink final documents in mid-September."

At the road show organised by Australia to promote its latest offering of 36 oil and gas areas for bidding, the Secretary said India expected to import LNG from Australia starting 2009 at an extremely affordable price. "Gas supplies will be for the terminal at Kochi being set up by Petronet LNG Ltd," he said.

Besides Australia, Petronet, jointly owned by Oil and Natural Gas Corp, Indian Oil Corporation, Bharat Petroleum Corporation and GAIL (India) Ltd, is in talks with Qatar, Oman and Abu Dhabi for additional LNG. Petronet currently imports 5 million tonnes per annum of LNG from RasGas of Qatar and this volume will go up to 7.5 million tonnes in 2008.

India plans to import frozen natural gas from the North West Shelf venture, which is operated by Australia's Woodside Petroleum Ltd.

Positive factor

Earlier, Mr Srinivasan said this is the second road show from the Australian oil sector and one positive factor was that it is very transparent in nature, which increases investor confidence in that country.

Some of the Indian oil sector companies such as ONGC, OVL and some others who are already doing business in the Australian oil sector are expected to bid this time. The Secretary said cross-investment had become the order of the day and it would be mutually beneficial for the two countries. Similarly, the Australian oil sector companies were also expected to participate in the Indian oil sector's bidding process for securing a definite block for exploration and drilling.

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