Petronet steps up efforts to procure more LNG

New Delhi, July 20

The board of Petronet LNG Ltd on Monday is likely to consider the revised deal for liquefied natural gas (LNG) from Exxon Mobil’s interest in Australia’s Gorgon project.

Official sources told Business Line the company has been in talks to secure Exxon’s entire stake of 3.75 million tonnes per annum (mtpa) from the project.

Exxon’s share in the project has increased to 3.75 mtpa from 2.5 mtpa after project operator Chevron Corp announced increasing the project size to 15 mtpa.

To meet the increasing demand for clean fuel and with the natural gas supply crunch in the country, Petronet has been scouting for LNG from various sources. Petronet and Exxon have already frozen a draft agreement under which Petronet would buy Exxon’s share of LNG from the project for 25 years.

Chevron owns 50 per cent stake in Gorgon, while Exxon and Shell hold 25 per cent each. Petronet will have to give a final price quote to Exxon by July 31, sources said, adding that any decision on the deal could be expected by the last quarter of 2008.

Petronet plans to bring this LNG through its upcoming terminal at Kochi or the existing one at Dahej.

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