Oil and Natural Gas Corporation, a joint venture partner in Petronet LNG, is looking at picking up a 5 per cent stake in the Qatar-based Ras Laffan Liquefied Natural Gas Company.
RasGas is the preferred LNG supplier for Petronet's 5 mmtpa Dahej LNG terminal.
RasGas also holds a 10 per cent equity in Petronet LNG, a joint venture company promoted by the Gas Authority of India, ONGC, Indian Oil Corporation and Bharat Petroleum Corporation with an authorised capital of Rs 1,200 crore (Rs 12 billion) formed with the purpose of setting up LNG terminals in the country.
The four companies have an equity participation in equal parts to the extent of 50 per cent. In addition, Gas de France and Ras Gas/Mobil hold 10 per cent each and the balance equity is supported by financial institutions, banks and private companies of Gujarat.
Petronet LNG has signed a sales purchase agreement with RasGas for 25 years on FOB basis for the Dahej terminal and the Kochi terminal.
According to sources, ONGC will be part of the project management team and has also decided to pick up a 5 per cent stake in RasGas on behalf of Petronet LNG.
Petronet officials say the supply alliance with RasGas and Mobil provides numerous fundamental advantages which pass through to the consumers.
Inherent economic advantages resulting from geographic proximity to India, the cost-effective expansions of existing liquefaction facilities has resulted in a supply package from RasGas which could not be matched by any other supplier, company officials say.
RasGas has also offered support in developing the downstream infrastructure at both locations.
Close to 60 per cent of the construction of the Dahej terminal is already complete.
A consortium led by Japan-based Ishikawajima Harima Heavy Industries Company, has been awarded the engineering, procurement and construction contract.
The roof raising of both the LNG tanks has been completed. More than 1 km of the 2.4 km long Jetty has been completed.
The fabrication of piles for the balance Jetty and of the liquefied natural gas tankers is progressing as per schedule.