India to import 2.5 mln tonnes of LNG from Australia

New Delhi, July 13 (UNI) The Ministry of Petroleum and Natural Gas has almost finalised the signing of a Memorandum of Understanding (MoU) for the import of Liquefied Natural Gas (LNG) from Australia, Secretary, Ministry of Petroleum and Natural Gas, M S Srinivasan said today.

Talking to newsmen after inaugurating the two-day seminar on ''Australian Oil and Gas Exploration Opportunities'' here, Mr Srinivasan said the agreement to this effect is expected to be signed over a couple of days.

He said as per the agreement, India will be importing 2.5 million tonnes of LNG per year commencing from September 2009.

Mr Srinivasan said this imported LNG will land at the Cochi Port in Kerala where the Ministry is already setting up the necessary facility to handle the imported LNG of same quantity and this terminal is expected to be ready by December 2008.

In response to a question, Mr Srinivasan said this import will be at an affordable price.

Earlier, Mr Srinivasan said this is the second road show from the Australian oil sector and one of the most positive factor was that they are very transparent in nature which increases the investors confidence in their country.

Some of the Indian oil sector companies like the Oil and Natural Gas Corporation (ONGC), ONGC Videsh Ltd (OVL) and some others, who are already doing business in the Australian oil sector, are expected to bid this time.

He said cross investment has become the order of the day and it would be mutually beneficial for the two countries. Similarly, the Australian oil sector companies were also expected to participate in the Indian oil sectors bidding process for securing a definite block for exploration and drilling.

He said this sector all over the world is experiencing huge spurt in investment but at the same time it is also a fact that some of the major oil areas in the world are in the troubled areas.

Mr Srinivasan wished all success to the Australians in their effort to mobilise investors from India for the Australian oil and Gas exploration process, he added.

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