The Hindu Business Line : GAIL in talks to buy LNG from Australia

To meet the requirement of LNG for its projects including Dabhol, GAIL is in talks with companies operating in Australia for sourcing the gas and is also looking at participating in the exploration and production activities in that country.

The company is looking to buy around 5-7 million tonnes of LNG a year from Australia.

"Australia is a major LNG player and we need LNG as we are planning to restart the Dabhol power project by September 2006," said Mr Proshanto Banerjee, Chairman and Managing Director.

"We are willing to tie up for the said quantity of LNG at the right price. Discussions on this are going on quite well."

He was speaking to newspersons after a meeting with the visiting Western Australian Premier, Mr Geoff Gallop.

Talks are on with North West Shelf, Woodside and Gorgon for the supply of LNG for GAIL projects in India.

"The company's requirement commences from 2006. We are looking at a long-term arrangement for supplies from Australia. The company would be review the price of LNG every 3-4 years," said Mr Banerjee.

"If our negotiations are successful, we should get the Australian LNG next year."

E&P ventures: GAIL is also willing to invest up to $500 million in exploration and production ventures in Australia, as well as in LNG liquefaction ventures there, Mr Banerjee said. The proposed investments will be made over 3-5 years.

The Australian Government has invited bids from local and foreign companies for oil and gas exploration and production in about 27 blocks in the country.

The deadline for the bids is March 2006. GAIL is also looking at taking part in the ongoing bidding round for oil and gas blocks in Australia, he said.

"If we get any block in Australia, then we will take a minority stake in some LNG train for liquefaction to bring our share of gas to India."

On domestic ventures, Mr Banerjee said GAIL was keen to participate with IOC in the proposed 2.5-million-tonnes-a-year LNG terminal at Ennore in Tamil Nadu.

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