Qatar to supply 1.2 million per annum LNG for Dabhol

By Staff
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Google Oneindia News

New Delhi, Nov 24 (UNI) The Dabhol power project will get another boost with Qatar's RasGas today agreeing to supply 1.2 million tonne per annum of Liquefied Natural Gas (LNG) from 2007 to fuel the plant which is currently being run on the more expensive naptha.

But the price of gas has yet to be thrashed out, an official said.

RasGas has agreed in principle to supply 1.2 mmtpa of LNG from March 2007 to early 2009 a top official said after Qatar's Second Deputy Prime Minister and Ministry of Energy and Industry Abdullah Bin Hamad Al Attiyah called on Prime Minister Manmohan Singh here.

Petroleum Minister Murli Deora was also present.

Petronet LNG, would import the LNG from its Dahej terminal in Gujarat and supply it to the power plant through the Dahej-Uran pipeline.

India and Qatar have stil to thrash out the price of gas.

While RasGas marginally lowered its earlier offer price of about 10 dolars per million British thermal unit (mBtu), the Indian firm was willing to pay no more than 5.5 dollars per mBtu.

''They are still insisting on a price of 7-8 dollars per mBtu,'' the official said.

The official said further discussions on price would be held today and tomorrow and expressed hope to persuade RasGas to agree at a price of 5.5 dollars per mBtu.

Earlier, welcoming the delegation, the Prime Minister referred to the unique and warm relations which prevail between Qatar and India and which are getting further reinforced in the recent years.

He observed that in the context of India's rising demand for hydrocarbons to meet its ever-increasing energy needs, Qatar's role as a major LNG supplier to India has been notable. India is currently importing five MTPA of LNG from Qatar and this will increase to 7.5 MMTPA from September 2009. The Prime Minister mentioned that the relations between the two countries would further expand through mutual investments in the energy sector. In this context, he referred to the discussions currently under way between the Qatar investment authorities and the Indian companies, viz., Petronet LNG Ltd (PLL), NTPC, ONGC and EIL.

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