NEW DELHI, 24 March 2006 — Qatar is expected to supply 2.1 million tons a year of liquefied natural gas (LNG) from December to fire the mothballed Dabhol power plant, a top Indian official told Reuters yesterday.
Petronet India Ltd. is negotiating with Rasgas of Qatar for gas supplies for the Dabhol plant. Built by Enron, the plant is now controlled by Ratnagiri Gas and Power Pvt Ltd. - owned by gas transmission firm GAIL (India) Ltd. and the National Thermal Power Corp. Ltd.
“Negotiations between Petronet and Rasgas of Qatar are proceeding well. Ratnagiri is confident of getting 2.1 million tons a year of LNG, which is adequate to run all its turbines,” Petroleum Secretary M.S. Srinivasan told Reuters. He said LNG supplies for the project had been firmed up for two and a half years.
Petronet, which set up India’s first LNG terminal at Dahej in the western Indian state of Gujarat, would import the gas but Royal Dutch Shell’s terminal at Hazira in the same state would also be used to import LNG, officials say.
GAIL said it had signed an agreement with Royal Dutch Shell to use the oil major’s facilities to import LNG.