India and Algeria to enhance cooperation in oil sector

New Delhi, Apr 22 (UNI) India has expressed its desire to purchase Liquified Petroleum Gas (LPG) from Algeria on term contract basis.

Besides this, opportunities in other areas of hydrocarbon sector for mutual benefit will be pursued, said the Petroleum and Natural Gas Minister Murli Deora during his hour long meeting with the Algerian Prime Minister Abdelaziz Belkhadem.

Mr Deora conveyed India's strong desire to strengthen the friendly relations between India and Algeria particularly in the oil and gas sector.

Algeria has large exportable surplus of LPG while India is a large importer of the product. Mr Abdelaziz Belkhadem emphasised the need for forging strategic relations in hydrocarbon domain in the backdrop of long standing friendship between the two countries.

During a delegation level talks the Algerian Energy and Mining Minister Chakib Khelil gave a comprehensive insight into the structure of the hydrocarbon, electricity and mining sectors in Algeria.

He informed Algeria aims at exporting 85 billion cubic metres of gas by the year 2010m, up from about 62 billion cubic metres with 50 per cent being supplied as Liquified Natural Gas (LNG).

He also highlighted the plan to expand pipeline capacity to supply gas to Europe. GAIL expressed their interest to participate in a major project on the anvil, the envisaged Trans-Sahara gas pipeline project linking Nigeria to Algeria and onwards to the European market through existing pipeline network.

The Company also offered pursuing equity in LNG infrastructure and in CNG projects in Algeria for which they are prepared to work closely with the local agencies.

In upstream sector India conveyed that Indian oil PSUs are open for joint bidding with NOCs of Algeria in their upcoming seventh round of bidding during 2007.

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