From rxpgnews.com
Qatar to 'favourably' consider India's gas demand
By RxPG News Service,
Nov 25, 2006 - 3:49:26 AM
New Delhi, Nov 24 - Qatar Friday said India's demand for additional liquefied natural gas - would be considered favourably even as it has already committed for supplies till 2010.
Qatar is planning to increase its annual production of LNG to 29 million tonnes by the yearend and then gradually increase it to 77 million tones by 2010. But all this capacity has been fully committed for, the country's Energy and Industry Minister Abdullah bin Hamad Al Attiyah said.
On supply of additional LNG to India, Al Attiyah, who is also the second deputy premier, said: 'In addition to the 5 million tonnes of LNG we have been supplying to Petronet LNG Ltd -, we have committed to provide India another 2.5 million tones. Hopefully the supply will begin by June 2009.'
Attiyah, who is on a two-day visit to India after visiting South Korea and Japan met Prime Minister Manmohan Singh and Petroleum Minister Murli Deora during a hectic schedule that saw him discussing possible engagement with various oil and power companies.
Qatar investment agencies are scouting for possible collaborations with Indian companies on supply of additional LNG to India.
The minister said additional short time supplies of LNG to India would be considered as and when available.
He told reporters the deal for 1.25 million tonnes of LNG Petronet has sought on short-term basis of 2.5 years for operation of Ratnagiri Gas and Power Pvt. Ltd. - was still to be finalised.
Official sources said the deal is stuck on pricing issue. Though global prices of gas have softened and Qatar has lowered its price to around $7-8 per million British thermal unit -, India is seeking a price closer to $5.
Petroleum Secretary M.S. Srinivasan said India would be requiring around 20 million tones of LNG, which is a more expensive fuel compared to natural gas and involves processing and transportation cost.
Currently, India is getting only 5 million tones of LNG from Qatar and is hopeful of clinching some long-term deals with countries like Australia, Nigeria and Algeria.
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