The Hindu Business Line : BG in talks with Petronet LNG for terminal access

While BG and PLL official sources are tight-lipped on the issue, industry sources say that the global energy major is in an advanced stage of discussion (with PLL) in this regard and imports may begin in early 2008-09, once PLL completes capacity expansion of Dahej terminal.

As per the proposal, BG may source spot LNG from its global liquefaction capacities, get it regasified using PLL’s capacity against a negotiated charge and will sell it directly to its (BG’s) customers.

Sources, however, could not comment on whether PLL has any long-term interest involved in allowing BG to access its terminal.

It may be mentioned that BG had made at least two such attempts in the past to import LNG cargoes through Shell Hazira terminal.

According to sources, a substantial quantity of the proposed LNG imports may be used by BG’s city gas subsidiary Gujarat Gas Company Ltd (GGCL). The company official sources refused to comment on the issue.

GGCL was originally exploring LNG options for growth beyond 2009. The situation, however, changed dramatically following the recent award of marketing right of Panna-Mukta-Tapti joint venture (PMT) gas to GAIL and the subsequent reduction in supply to GGCL.

While BG is lobbying the case for its subsidiary before the Union Ministry of Petroleum and Natural Gas, according to sources, GGCL is now seriously looking forward to LNG options to maintain supplies to its existing customer base in the immediate future.

Availability of LNG

Interestingly sources feel that considering the rising demand for LNG especially in the Far East and the resultant high prices, it is yet to be seen whether such options would be viable for CGD companies.