(TH)
Petronet LNG Ltd is keen to partner with ONGC Videsh Ltd to buy a stake in Qatar Petroleum’s upcoming gas exploration and liquefied natural gas (LNG) projects, its MD and CEO Prabhat Singh said. Qatar Petroleum plans to expand LNG production capacity from 77 million tonnes per year to 100 million tonnes in next few years. Petronet is keen to take 5 per cent stake in the expansion project along with associated upstream gas development, he said. State-owned Qatar Petroleum, which consolidated its two LNG producing companies — Qatargas and RasGas into itself earlier this year — is looking to form a joint venture with international partners to deliver the North Field expansion.
“We had meetings with them and they have asked us to give a business proposal,” Singh said, adding the joint team of Petronet and OVL is keen to visit data room to firm their views. Petronet currently buys 7.5 million tonnes of LNG per annum from RasGas of Qatar under a 25-year contract. RasGas had in the contract promised to give 5 per cent stake to Petronet or its nominee in the liquefication plant in the Gulf nation.
But Oil and Natural Gas Corp (ONGC), which was assigned to pick up the equity, hesitated in making the $135-million payment. The stake is now worth $2 billion. Singh said Qatar has announced plans to produce 100 million tonnes of liquefied natural gas (LNG) annually — equivalent to a third of current global supplies — in the next five to seven years, up from current 77 million tonnes. Petronet is keen to get ownership of gas molecule at the well-head and so wants a stake in both the upstream development and LNG production facility, he said.
