Petronet to deal with Chevron for LNG import

Petronet expects to sign a contract by the end of July for import of 2.5 million tonnes of LNG from Chevron Corp's Gorgon project.

Petronet LNG Ltd, India's largest liquefied natural gas importer, expects to sign a contract by the end of July for import of 2.5 million tonnes of LNG from Chevron Corp's Gorgon project in Australia.

HT Image

"We are progressing well on the deal and we expect to ink it sometime in July," PLL CEO and Managing Director P Dasgupta told reporters.

Petronet plans to buy 2.5 million tonnes of LNG a year from the Gorgon venture for 25 years. Supplies are expected to begin in 2009 and shipments would be received at its upcoming import terminal at Kochi in Kerala.

He said Petronet LNG will float a special purpose vehicle (SPV) to pick up equity in shipping vessels being built to carry LNG to its terminal at Dahej in Gujarat and Kochi in Kerala.

Petronet will hold 49 per cent stake through the SPV in the three new ships it has ordered to ferry additional 2.5 million tonnes expected from Qatar and an equal volume from Gorgon.

He said Dahej capacity would be doubled to 10 million tonnes per annum by 2008 end while Kochi terminal would come up in 2008-09.

The company currently imports 5 million tonnes per annum of LNG from Qatar. An additional 2.5 million tonnes from Qatar has already being contracted from 2008-09 and the company is in talks for additional volumes.