RasGas, Petronet agree on LNG supply terms, schedule deliveries

Shirish Nadkarni
OGJ Correspondent

MUMBAI, Jan. 15 -- India's first consignment of LNG will be delivered later this month to Petronet LNG's new $547 million, 5 million tonnes/year receiving terminal at Dahej on the Gujarat coast, following the recent signing of a competitive supply agreement with Qatar's RasGas Co. Ltd.

"We've got a special fixed price from RasGas for 5 years of the 20-year contract," said P. Dasgupta, finance director of Petronet, a joint venture of government-run oil and gas companies and overseas investors, including Gaz de France.

Petronet will import 5 million tonnes of LNG from Qatar for an aggregate fixed price of $800 million/year until December 2008.

The price equates to about $3.25/MMbtu, at least 25% cheaper than current Asian LNG prices. The Indian price is indicative of fierce competition in the Asian LNG market, with China having signed a similar lucrative deal recently.

Manila-based Asian Development Bank will take a 5.2% equity stake in the Indian pipeline firm for $75 million and also will guarantee a $154 million bond sale by Petronet.

Petronet has planned a similar 2.5 million tonne/year LNG terminal at Kochi, in the southern Indian state of Kerala and is considering doubling the capacity of the Dahej terminal (OGJ Online, July 28, 2003).

Related Articles

DOE approves LNG exports to non-FTA countries from Oregon project

03/24/2014 The US Department of Energy conditionally approved Jordan Cove Energy Project LP’s application to export LNG through its proposed terminal on Orego...

INGAA Foundation forecasts oil, gas infrastructure outlays to 2035

03/18/2014 An estimated $640.9 billion, or an average $29.1 billion/year, will need to be spent on US and Canadian midstream crude oil, natural gas, and natur...

Cameron LNG awards export-plant contracts

03/17/2014 Cameron LNG LLC has awarded CB&I and Chiyoda International Corp. a $6 billion engineering, procurement, and construction contract to build a 13...

IOC to buy stake in proposed PNW LNG terminal

03/17/2014 Indian Oil Corp. Ltd. (IOC) has signed an agreement with Progress Energy Canada Ltd., Calgary; Pacific Northwest LNG Ltd. (PNW LNG), Vancouver, BC;...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected