Business Daily from THE HINDU group of publications
Sunday, Jun 22, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Sunday, Jun 22, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Overseas Investments Petronet LNG eyes role in Australian gas assets Richa Mishra New Delhi, June 21 To secure gas supply for the capacity expansion currently under way, Petronet LNG Ltd (PLL) is considering taking participating interests in gas assets in Australia. The company is in talks with European and American firms with acreages in Australia. PLL is looking at gas fields with likely in-place reserves of 8-15 trillion cubic ft (TCF). Two firms have already opened their data room for the Indian company. While two acreages are said to be offshore, one is an onshore field. Mr P. Dasgupta, Managing Director and CEO, PLL told Business Line, “We are in talks with players which already have acreage. We would like to participate in projects where gas has been struck and also there are onshore development opportunities for producing liquefied natural gas (LNG).” PLL is also looking at coal bed methane (CBM) projects in Australia. The company plans to source around 7.5-10 million tonnes per annum of LNG. “The focus of the company is sourcing gas and if supply is assured, PLL would not like to miss any opportunity,” Mr Dasgupta said. As regards talks with Exxon for its share of 3.75 million tonnes a year LNG from the Gorgon project in Australia, he said negotiations are continuing. If the company is able to arrive at a price for the gas, which is currently under negotiation, the deal is expected to be closed by September this year. PLL plans to bring gas from the Gorgon project for its upcoming LNG terminal at Kochi. PLL at present gets 5 million tonnes per annum of gas at its Dahej terminal in Gujarat from Qatar’s RasGas under a long-term contract and this will increase to 7.5 million tonnes from 2009. The capacity of the Dahej terminal is being increased to 10 million tonnes by December from the existing 5 million tonnes (excluding excess design capacity). Besides, from January 2009 the pricing of the RasGas gas will also change. According to the agreement with RasGas, for the first five years the company was supposed to get gas at a fixed price. From January this would be slightly higher and have indexation to crude. For the end-consumer the gas will be close to $6 million British thermal units (mmBtu). More Stories on : Overseas Investments | Petroleum
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