British Gas keen to supply Iran gas to India

British Gas keen to supply Iran gas to India:
Business India
New Delhi, Aug 19 (IANS) :

British gas major BG Group has shelved plans to set up a liquefied natural gas (LNG) terminal at Pipavav in Gujarat and is instead exploring option of supply gas to India from Iran.

"We have no plans at this stage for setting up a LNG terminal at Pipavav and are instead looking at export of gas from Iran where we have signed an agreement with National Iranian Oil Company (NIOC) to set up a 4.8 million tonnes per annum LNG train," Nicole McMohan, director policy and corporate affairs of BG India, said here Wednesday.

Iran, which holds the second largest gas reserves after Russia, has been exploring various alternatives to export the energy fuel to India.

"BG believes India offers a good market for LNG exports from Iran as there would be a number of LNG terminals coming up including the Petronet LNG terminal at Dahej and Shell terminal that would be ready by 2005-06," McMohan told reporters on the sidelines of a gas conference.

The proposed equity structure of the British company in the Iran project is still being negotiated, the official said.

The energy major, already engaged in exploration activities here, sees a growing gas market in India.

Since early this year, India has started import of LNG from Qatar to meet the growing gas demand that is almost double the domestic availability of around 70 million standard cubic metres per day.

The company currently holds 30 percent stake in Panna-Mukta and Tapti oil and gas fields as also controlling stake in Gujarat Gas Company Ltd., a private gas transmission and distribution company. It also has stake in Mahanagar Gas, which supplied compressed natural gas in Mumbai.

"As we come closer to 2009, when the first LNG train would be ready, we would look at the viability of exporting LNG to India and to the EU, the two markets which show good potential demand," McMohan said.

The official disclosed that BG India was very keen to step up activities in India, particularly in the exploration and production activities.

"We would definitely be looking at the exploration blocks that would be offered in the next round of the New Exploration Licensing Policy (NELP) in September. We are also seeking participation in some of the blocks in the vicinity of the Panna-Mukta and Tapti fields," she said. Tweet