| Date: |
23-03-2010 |
| Subject: |
Qatar to Export More LNG to India |
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NEW DELHI -- Qatar has agreed to export an additional four million metric tons of liquefied natural gas per year to India by 2013 and the two countries are now discussing the price of the fuel, India's federal oil secretary said Monday.
"The proposal is for (an additional) 0.3 MMT LNG in 2010, 0.5 MMT in 2011, 2.5 MMT in 2012 and 4 MMT in 2013," S. Sundareshan told reporters on the sidelines of an industry conference.
India already imports 7.5 MMT of LNG a year from Qatar, the world's largest LNG producer and exporter. Qatar accounts for most of India's LNG imports.
The South Asian nation needs to meet the massive energy demands of a fast-growing economy and is seeking overseas LNG supplies as a significant increase in domestic gas production is proving insufficient.
Mr. Sundareshan said a share of the additional LNG from Qatar will go to Petronet LNG Ltd. and to Ratnagiri Gas & Power Pvt. Ltd.'s yet-to-be-commissioned 5 MMT LNG terminal in the western state of Maharashtra.
India currently has LNG re-gasification capacity of 14.5 million metric tons per annum at its two terminals in Dahej and Hazira, where it imports the fuel. The 11 MMT terminal at Dahej in the western state of Gujarat is run by Petronet LNG, while the 3.5 MMT terminal at Hazira is operated by Shell.
The country expects LNG capacity to reach 20 MMTPA by 2011-2012, Oil Minister Murli Deora said Monday.
Petronet LNG is expanding its capacity at Dahej and building a 2 MMT LNG terminal in Kochi. Ratnagiri's 5 MMT terminal was supposed to be partly commissioned in March, but was delayed as the contractor couldn't start dredging work.
Mr. Sundareshan said he expects 2.5 MMTPA capacity at Ratnagiri's terminal to be commissioned in the current calendar year, after the monsoon season, which typically lasts from June until September, and full capacity to be commissioned after the breakwater capacity is built.
State-run NTPC Ltd. and GAIL (India) Ltd. each hold a 28.33% stake in Ratnagiri Gas & Power, while state utility Maharashtra State Electricity Board has a 15% stake. The rest is owned by financial institutions.
Ratnagiri's 5 MMT terminal was initially planned by Enron Corp. to import LNG for a power plant in Maharashtra. After the U.S. company's collapse, Ratnagiri Gas & Power took over the project in 2005.
Source : online.wsj.com
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