Petronet eyes coal bed methane projects in Australia

Mumbai: Gas firm Petronet LNG will bid for gas blocks in Australia's next licensing round, as it intents to join coal bed methane (CBM) projects in that country.

Petronet plans to source around 7-12 million tonnes of liquefied natural gas (LNG) a year from the CBM projects and is open to buying equity if allowed, chief executive Prosad Dasgupta said.

He said some CBM projects that were local suppliers were now looking at producing additional volumes as reserves increased.

"The focus is gas. If I have to invest to secure supply, I will do it," Dasgupta said. He said the investment would, however, depend on the equity they are prepared to offer, if at all they are going to offer.

Australia will announce the blocks to be offered under its next asset auction in early April.

Dasgupta, who returned from Australia last week, had a meeting with officials in Western Australia and the federal government.