India to trade Petronet LNG stake for additional gas from Qatar

Mumbai: India has sought an additional 10-million tonnes of liquified natural gas (LNG) from Qatar in return for a stake in Petronet LNG, official sources said after Qatar finance minister called on petroleum minister Murli Deora.

Qatar has already contracted to supply 7.5 million tonnes of LNG annually, which India wants to be raised to 17.5 million tonne, officials said.

Qatar Investment Agency, they said, is likely to pick up the $100 million FCCB of Petronet LNG that will give the Qatari company between 7.5 and 12.5 per cent stake in Petronet LNG. The agreement would also give the Qatari company a chance to buy a stake in the expanded LNG terminal of Ratnagiri Gas and Power Ltd (Dabhol power plant).

"They were very positive on our demand. We expect to import the additional fuel, which will be mainly used to run power plants, from 2010-11," said petroleum secretary M S Srinivasan.

Qatar Petroleum-Exxon Mobil Corp joint venture Ras Laffan Liquefied Natural Gas Co had signed an agreement with Petronet LNG in 1999 to sell 7.5 million tonnes of LNG annually. Petronet currently imports five million tonnes at its Dahej terminal in Gujarat and would start importing the rest 2.5 million tonnes from 2009.