India close to major LNG supply deals
India’s Petronet LNG is in talks with the Chevron-led Gorgon LNG project in Australia over a 25-year gas supply agreement. Gorgon would supply 2.5M tonnes of LNG to Petronet’s Kochi facility in South India. Once the deal is secured, Petronet LNG will announce the winners of a tender to charter two LNG carriers to supply liquefied gas to Kochi. Mitsui, Teekay, Exmar and MISC have all made bids for the tender, a Petronet LNG source confirmed to Fairplay. Petronet is also planning this year to increase LNG supplies from Ras Gas by 2.5M tonnes a year to 10M tonnes. In 1999 Petronet LNG signed a contract with Ras Gas to supply 7.5M tonnes of LNG a year over a 25-year period. Meanwhile the company is looking to double spot market gas purchases as growth in demand for LNG in India rises to 8-9% a year. Twenty-four LNG cargoes are to be purchased on the spot market this year, compared with 12 in 2006. The company is in talks with Iberdrola, which this week acquired Scottish Power in a €17Bn deal, after securing a deal with Union Fenosa Gas earlier this year. Petronet LNG has targeted Spanish companies because of surplus supplies of gas shipped to Iberia, but other sources are also being tapped up.