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Reliance mulls over $ 3 billion investment for LNG business
Corporate giant Reliance is believed to have drawn up an investment plan of over $ three billion to enter Liquefied Natural Gas (LNG) business including likely imports from Iran and Oman.
Corporate giant Reliance is believed to have drawn up an investment plan of over $ three billion to enter Liquefied Natural Gas (LNG) business including likely imports from Iran and Oman.
“The investment in LNG sector by Reliance, which operates the world's largest refinery of 27 million tones at Jamnagar (Gujarat), is part of the corporate's strategy to emerge as a composite player in the petroleum sector,” sources said.
When contacted, Reliance spokesman from Mumbai declined to comment on LNG forays.
Reliance's entry into LNG business, for which it has already received the approval of foreign investment promotion board, assumes importance in the wake of uncertainty, the LNG ventures announced in the country so far.
Sources said that the corporate was planning to import up to 10 million tones of LNG in India by 2004 and added that R P Sharma, who resigned as commercial director of the oil PSUS joint venture Petronet-LNG (PLL), is likely to take responsibility of Reliance's project. When contacted Sharma neither confirmed nor denied the move and informed that he had quit PLL as he was not comfortable to execute $ one billion project to import 7.5 million tones of LNG from Qatar.
As per the plans, about 55 per cent of the investment would be abroad where reliance would set up a plant for liquidification of gas from the sourcing country before transporting the same to India. Sources said that Reliance is negotiating with National Oil Company (NIC) of Iran, where it was reported to have signed a memorandum of understanding earlier this year, for sourcing of gas.
“As per the plans it would source gas either from Iran or Oman and set up a liquification plant there for receiving LNG at Jamnagar,” sources said, adding that a regassification plant would also be erected at the importing facilities.
“The proposal for liquification plant abroad is aimed at cutting the import cost and taking an advantage over other players who are tying up for import of LNG directly from oil producing countries in middle east, Indonesia and Australia,” sources added.
Part of LNG would be used by Reliance for its various ventures while for the rest it would scout for buyers in Gujarat and surrounding areas, sources said.
PLL, which ejected last week the national thermal power corporation from the joint venture, meanwhile, made a presentation before Petroleum Minister Ram Naik on Monday and assured that it would start bringing in five million tones of LNG annually from the end of 2003.
After the presentation, PLL officials informed that the project will come as per schedule and the corporation is in the process of finalising the award for $ 650 million project for erecting import facilities at Dahej.
“PLL would import another 2.5 million tones of LNG at Kochi from 2004 for which it would set up facilities at an investment of $ 350 million,” they said. Bureau Report
When contacted, Reliance spokesman from Mumbai declined to comment on LNG forays.
Reliance's entry into LNG business, for which it has already received the approval of foreign investment promotion board, assumes importance in the wake of uncertainty, the LNG ventures announced in the country so far.
Sources said that the corporate was planning to import up to 10 million tones of LNG in India by 2004 and added that R P Sharma, who resigned as commercial director of the oil PSUS joint venture Petronet-LNG (PLL), is likely to take responsibility of Reliance's project. When contacted Sharma neither confirmed nor denied the move and informed that he had quit PLL as he was not comfortable to execute $ one billion project to import 7.5 million tones of LNG from Qatar.
As per the plans, about 55 per cent of the investment would be abroad where reliance would set up a plant for liquidification of gas from the sourcing country before transporting the same to India. Sources said that Reliance is negotiating with National Oil Company (NIC) of Iran, where it was reported to have signed a memorandum of understanding earlier this year, for sourcing of gas.
“As per the plans it would source gas either from Iran or Oman and set up a liquification plant there for receiving LNG at Jamnagar,” sources said, adding that a regassification plant would also be erected at the importing facilities.
“The proposal for liquification plant abroad is aimed at cutting the import cost and taking an advantage over other players who are tying up for import of LNG directly from oil producing countries in middle east, Indonesia and Australia,” sources added.
Part of LNG would be used by Reliance for its various ventures while for the rest it would scout for buyers in Gujarat and surrounding areas, sources said.
PLL, which ejected last week the national thermal power corporation from the joint venture, meanwhile, made a presentation before Petroleum Minister Ram Naik on Monday and assured that it would start bringing in five million tones of LNG annually from the end of 2003.
After the presentation, PLL officials informed that the project will come as per schedule and the corporation is in the process of finalising the award for $ 650 million project for erecting import facilities at Dahej.
“PLL would import another 2.5 million tones of LNG at Kochi from 2004 for which it would set up facilities at an investment of $ 350 million,” they said. Bureau Report