PETRONET LNG AND PROMOTERS SIGN AGREEMENTS
WITH RASGAS OF QATAR
FIRST
INDIAN LNG PROJECT TO OPEN NEW LEADS FOR ECONOMIC DEVELOPMENT
Shri Ram Naik, Minister
of Petroleum & Natural Gas, has said that the era of gas shortages
would soon witness the commencement of significant reduction.
At present the availability of gas is only to the extent of about
half of the allocation of gas made to users. Speaking at the signing
of seven documents/agreements including finalisation of gas pricing
mechanism, Shri Naik described the event as historic which would
lead to a new era of industrial development when the Gas starts
arriving in January 2004. With another LNG project by Shell (2.5
Million Tonne), the largest discovery of gas in 2002 off Andhra
Coast, ONGC's discovery in Vasai East and by Niko near Surat,
a prospect of significant augmentation of gas supply in the country
is within sight. This finds a parallel in oil sector where LPG
connections have been made available on demand against the earlier
experience of a waiting period of 3-4 years.
Shri Ram Naik described
the signing of the documents/agreements as the ones paving way
for new leads for economic development in India as the Dahej LNG
import terminal is nearing completion by December 2003. The 5
million tonne gas equivalent to 20 million metric standard cubic
metres (MMSCMD) will be supplied to users along HBJ gas pipeline
through a parallel pipeline scheduled for commissioning by GAIL
in April 2004. Another pipeline is being laid from Dahej to Uran
near Mumbai at a cost of Rs. 1,400 crore and would be completed
by December 2004. This project would provide gas cheaper than
Naphtha, fuel oil, diesel etc. This also offers opportunity for
development of CNG Project in the cities of Ahmedabad, Baroda,
Mumbai and Pune which have high vehicular population.
He called upon PLL
and its promoters to remain competitive and reflect the same efficiency
as in implementing the project within time and cost. Shri Ram
Naik pointed out that Petronet LNG has taken a good lead over
another LNG project being implemented by Shell at Hazira which
would be completed by December 2004. Shri Naik emphasised that
the PSUs can perform on equal level, if not better, than the others
in the field with right attitude and motivation. Shri Naik said
that it is a matter of satisfaction that the process of procuring
LNG through tenders adopted by India were also followed by China
and Taiwan.
In all, seven Documents/Agreements
were signed today between RasGas of Qatar, Petronet LNG Limited
and its promoters Oil and Natural Gas Corporation (ONGC), Indian
Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL)
and Gail (India) Limited (GAIL). These include GSPA and Side Letters,
Deeds of Hypothecation, Direct Agreements, Inter-participant Letter,
Fuel Payment Trust and Retention Agreement, Inter Trustee Agreement
and Consent for SPA Assignment.
Petroleum Secretary
Shri B.K. Chaturvedi explained the complex issues involved in
arriving at various agreements and in implementation of projects.
Dr. Ibrahim, Vice President RasGas complemented the various companies
and personnel from India and Qatar in making this project a success
which he described as the first LNG Project in a developing country.
