State-owned Bharat Petroleum Corp Ltd (BPCL) has sought bids from liquefied natural gas (LNG) suppliers for short-term import of the fuel to meet domestic demand.
New Delhi: State-owned Bharat Petroleum Corp Ltd (BPCL) has sought bids from liquefied natural gas (LNG) suppliers for short-term import of the fuel to meet domestic demand.
BPCL plans to import LNG from the spot market to meet the deficit arising from fall in output from domestic natural gas fields. It wants to import LNG at Dahej terminal in Gujarat or at Kochi in Kerala.
The company has called for Expression of Interest by May 2 for signing a Master Sales and Purchase Agreement with LNG suppliers.
"BPCL's preferred mode of purchase of the spot cargoes would be through short notice tenders, which would be invited from panel of suppliers who have signed MSPA with BPCL," it said in the tender document. "BPCL may enter in to MSPA for a minimum period of five years."
LNG is natural gas that has been cooled to become liquid for ease of shipping. At the import site, it is reconverted into gas, a process called regassification.
The eligibility criteria includes the applicant having a minimum annual turnover of USD 50 million and a networth of USD 25 million.
Bids have been sought from producers/suppliers of LNG from any of the existing LNG supply plants or from those who have a valid Sales and Purchase Agreement with an entity having an LNG liquefication project without any delivery and destination restrictions.
Suppliers who have traded at least 2 cargoes of capacity 75000 cubic meter each as spot cargoes or long term/short term of LNG during last one year or has an agreement with any existing LNG producer to market LNG on their behalf in India can also apply, the tender documents said.
It is also open to buying LNG from a firm which owns or operates LNG import terminal in India.
BPCL is equal promoter in Petronet LNG Ltd, which operates a 10 million tons a year import and regassification facility at Dahej in Gujarat and is building a 5 million tons terminal at Kochi in Kerala this year.
The country is facing a fuel scarcity as gas production from the Reliance Industries' eastern offshore KG-D6 fields dropped to about 17 million standard cubic meters per day this month from 63-64 mmscmd it had hit in March 2010.