Government-run oil explorer Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IndianOil) and the country?s largest gas importer of liquefied natural gas (LNG), Petronet LNG, are looking to acquire a 15% stake in Russian gas producer Novatek?s Yamal LNG project.
The project, which includes a 15-million-tonne (mt) capacity LNG terminal, could see an investment of $23 billion to $24 billion.
?We are in talks with them. In next two months we will be able to decide,? Ashok Kumar Balyan, managing director, Petronet LNG, said.
As domestic gas output continues to decline, Petronet LNG is pinning its hopes on the future of LNG. At present, the gap between the demand and supply of natural gas is being partly met by importing LNG.
Offloading a stake in Yamal may help Novatek seal a firm deal for supply of LNG to India, helping the country secure its fuel sources.
According to government estimates, demand for natural gas in the country was 179 million standard cubic metres per day (mscmd) during 2010-11 and is projected to be 473 mscmd in 2016-171. Against this, the total production of natural gas from indigenous sources was 146 mscmd during the 2010-11.
To meet their energy requirements, several Indian oil firms are planning to set up LNG terminals. ONGC plans to do so through its subsidiary Mangalore Refinery & Petrochemicals.
IndianOil proposes to set up a 5-mt terminal at Ennore Port by 2015, while Reliance Power in a joint venture with Shell is likely to come up with a 5-mt terminal in Andhra Pradesh that is located near its gas-based Samalkota power plant by 2014.
Oil India also has plans to enter the LNG business by the end of this fiscal, while gas transmission company Gail India is also likely to commission its 5 mt LNG terminal at Dabhol by the end of November.
Meanwhile, Petronet LNG reported a jump of over 5% in its net profit to R271 crore for the first quarter of 2012-13 against R257 crore during the corresponding period of the previous year due to higher margins on gas sales.
