State-owned GAIL (India) Ltd is in talks with Canadian oil firm InterOil to buy a stake in upstream assets and new liquefied natural gas (LNG) terminals in Papua New Guinea.
“We are examining the possibility of having a stake in the Papua New Guinea LNG terminal,” said B.C. Tripathi, CMD, GAIL. The Pacific nation had last year granted initial approvals for the second LNG project, which would follow a plant proposed by an Exxon Mobil Corp-led venture.
The venture would cost about $5 billion for a plant producing 3.5 million tonnes a year of LNG, with shipments due to start in 2014. GAIL has also sought assured natural gas supplies from Qatar to set up a $1.3 billion mega petrochemical plant with Reliance Industries in the gas-rich nation.