Petronet seals LNG deal with BP trading arm: sources

Petronet seals LNG deal with BP trading arm: sources
Comment E-mail Print Share
First Published: Mon, Jan 19 2009. 03 56 PM IST
Updated: Mon, Jan 19 2009. 03 56 PM IST
New Delhi: “Petronet LNG has signed a short-term deal with the trading arm of BP to import up to 1.5 million tonnes of liquefied natural gas (LNG) for a power plant in western India,” two trade sources said.
BP will supply LNG to Petronet during January-September, one source with knowledge of the deal revealed.
“Petronet’s finance director A. Sengupta signed the deal in mid-November in London,” the source said.
Another trader said that BP’s supplies would include cargoes from Egypt and Bangladesh’s Sangu project.
The government has asked Petronet to arrange fuel for the 2,150 megawatt Ratnagiri power project, earlier know as Dabhol, until September 2009, after which state-run gas firm GAIL (India) Ltd will take over.
Petronet signed a short-term deal in 2007 with Qatar’s RasGas to import up to 1.5 million tonnes of LNG for the plant, a contract that ran until last December.
The agreement with BP replaces these supplies.
Separately the firm gets 5 million tonnes a year from RasGas under a long-term LNG deal, and that will be raised to 7.5 million tonnes from the last quarter of 2009.
Petronet this month doubled the capacity of its Dahej terminal in western India to 10 million tonnes a year. It is building another 2.5 million tonnes a year plant at Kochi in Kerala.
Apart from the long- and short-term contracts, Petronet will get six additional cargoes from RasGas this year.
It has also been trying to secure long-term supplies for both the Dahej and Kochi terminals from Australia’s Gorgon project and from Papua New Guinea among other potential suppliers.
Comment E-mail Print Share
First Published: Mon, Jan 19 2009. 03 56 PM IST