11-06-2005, 02:22 AM
<b>Petronet, Chevron may soon sign LNG deal</b>
<b>NEW DELHI : This could well turn out to be a big one for Indiaâs LNG trade. Petronet LNG, which developed the first LNG terminal at Dahej, is close to signing up a deal with the US-based Chevron Corporation to import 2.5million tonne (mt) of LNG from Australia.
Chevron International and Shell are working at the Gorgon gas fields in North West Australia, and are expected to produce LNG by â09-10. The initial round of talks has been held between Petronet and Chevron, and a formal agreement will be inked before the end of the year, senior government officials said. The long-term LNG supply contract will be for 25 years. The Gorgon fields is estimated to have a capacity to produce 10mt of LNG annually.
The proposed import of LNG from the Gorgon fields will be primarily for the Kochi terminal. This deal with Australia comes close on the heels of the LNG import deal with Iran, which appears to have come under a cloud. Although India and Iran have signed up a deal, the agreement is still awaiting ratification by National Iranian Oil Company. India has been scouting for fresh sources of LNG given the uncertainty of gas supplies from Iran.</b>
Petroleum secretary SC Tripathi had recently said India was exploring alternatives for LNG supply from Australia and Qatar to meet its growing gas requirements. Petronet LNG, which is importing LNG from Rasgas and Qatar for its Dahej terminal, has been in discussions with Chevron, the operator of the Gorgon fields, to bring in LNG from Australia.
Petronet CEO P Dasgupta declined to comment on the development. Government sources said Petronet LNG had reached an in-principle agreement on the mechanism for pricing and payment. Although the finer details of the pricing are yet to be thrashed out, it is understood that it will comprise a variable and fixed component.
The variable component, expected to be linked to the Japanese Crude Cocktail, is also likely to include a band within which it would vary. Chevron Australia has signed a heads of agreement with Tokyo Gas Co, a major Japanese utility company, regarding the purchase of 1.2mt per annum of Gorgon LNG beginning â10 over 25 years.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b>NEW DELHI : This could well turn out to be a big one for Indiaâs LNG trade. Petronet LNG, which developed the first LNG terminal at Dahej, is close to signing up a deal with the US-based Chevron Corporation to import 2.5million tonne (mt) of LNG from Australia.
Chevron International and Shell are working at the Gorgon gas fields in North West Australia, and are expected to produce LNG by â09-10. The initial round of talks has been held between Petronet and Chevron, and a formal agreement will be inked before the end of the year, senior government officials said. The long-term LNG supply contract will be for 25 years. The Gorgon fields is estimated to have a capacity to produce 10mt of LNG annually.
The proposed import of LNG from the Gorgon fields will be primarily for the Kochi terminal. This deal with Australia comes close on the heels of the LNG import deal with Iran, which appears to have come under a cloud. Although India and Iran have signed up a deal, the agreement is still awaiting ratification by National Iranian Oil Company. India has been scouting for fresh sources of LNG given the uncertainty of gas supplies from Iran.</b>
Petroleum secretary SC Tripathi had recently said India was exploring alternatives for LNG supply from Australia and Qatar to meet its growing gas requirements. Petronet LNG, which is importing LNG from Rasgas and Qatar for its Dahej terminal, has been in discussions with Chevron, the operator of the Gorgon fields, to bring in LNG from Australia.
Petronet CEO P Dasgupta declined to comment on the development. Government sources said Petronet LNG had reached an in-principle agreement on the mechanism for pricing and payment. Although the finer details of the pricing are yet to be thrashed out, it is understood that it will comprise a variable and fixed component.
The variable component, expected to be linked to the Japanese Crude Cocktail, is also likely to include a band within which it would vary. Chevron Australia has signed a heads of agreement with Tokyo Gas Co, a major Japanese utility company, regarding the purchase of 1.2mt per annum of Gorgon LNG beginning â10 over 25 years.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->