Petronet nod for LNG import deal

  • 22/07/2008

  • Hindu (New Delhi)

NEW DELHI: The board of directors of Petronet LNG on Monday gave its nod for entering into a long term deal to import 3.5 million tonnes of liquefied natural gas (LNG) annually for the Bawana power plant being built in Delhi. The company's board also decided to lease its expanded Dahej terminal capacity to firms like Gujarat State Petroleum Corporation (GSPC) on tolling basis. At its meeting here, the PLL board gave its go ahead for a 10-year deal to import LNG for the Bawana power plant near Delhi. However, the Board is yet to give its final nod for the deal and it was not clear as to which country was the company entering into a long term contract. Official sources said it was not possible to disclose the name of the company as the negotiations were in an advanced stage. Petronet LNG had entered into an agreement with the Delhi Government to supply gas for its proposed plant at Bawana that was being built to cater to the demand for power during the 2010 Commonwealth Games. Under the deal, which is likely to be given a final shape in the coming days, Petronet will import 1.8 million tonnes in the first year beginning August and 3.5 million tonnes from 2009 onwards. Through another decision, the Petronet board has decided to lease excess capacity at the Dahej terminal to the four promoter firms