Sastry told CNBC-TV18, “Post third quarter of last year, Petronet LNG has turned around fabulously and it has been showing tremendously good amount of good growth rates. In the recent past also the company has tied-up with RasGas of Qatar for supply of around 1.25 MMT capacity of supplies.”
Petronet in deal with Exxon for Gorgon LNG
NEW DELHI (Reuters) – Gas importer Petronet LNG Ltd has signed a draft agreement with Exxon Mobil Corp to buy liquefied natural gas from Australia's Gorgon project, Petronet's chief executive said on Monday.
Prosad Dasgupta, who is also Petronet's managing director, said the two companies agreed early last month on all details but pricing, and the deal should cover purchases of 2.5 million tonnes of LNG a year for a period of 25 years.
"We are meeting them in November to discuss pricing and then in January … Preferably by June 30, 2008, we hope to finalise the deal," Dasgupta told Reuters.
Chevron Corp holds a 50 percent stake in the project, while Exxon and Royal Dutch Shell Plc each have 25 percent.
The supply of gas from Gorgon is expected to begin from the end of 2012, Dasgupta said.
He said the LNG would be regasified at the firm's 5 million tonnes a year Kochi terminal in Kerala, expected to be commissioned by mid-2011.
Petronet has been seeking LNG to secure energy supplies as demand grows in Asia's third largest consumer.
It is also talking to Chevron about buying LNG from its share of gas from Gorgon.
Dasgupta said that delays in awarding Gorgon environmental clearance had invalidated earlier agreements between operators and prospective customers, opening the door for Petronet.
pt. 7, Chevron finally won environmental approval for the project from the government of Western Australia and said key Japanese customers could take minority stakes.
They include Tokyo Gas, Chubu Electric Power and Osaka Gas.
Besides buying from the spot markets, Petronet recently signed a deal to buy 1.25 million tonnes of LNG from RasGas of Qatar before the end of March 2008 with an option to extend.
RasGas is also supplying India with 5 million tonnes a year of LNG under a long-term contract and the quantity will be raised to 7.5 million tonnes a year from 2009.