FINANCIAL TIMES: Shell and Total in India gas deal: “Royal Dutch/Shell, the Anglo-Dutch energy group, and Total of France are to supply "tens of millions of dollars" worth of liquefied natural gas to India, one of the world's fastest-growing energy consumers.” (ShellNews.net) 21 April 05

By Ray Marcelo

Published: April 21 2005

Royal Dutch/Shell, the Anglo-Dutch energy group, and Total of France are to supply "tens of millions of dollars" worth of liquefied natural gas to India, one of the world's fastest-growing energy consumers.

Charles Watson, Shell's director for Middle East, South Asia and Africa, said the partners have signed a contract with the Gujarat State Petroleum Corporation to supply 2.5m tonnes of LNG a year. He declined to specify the duration of the deal or its overall value.

"We see India as a very promising developing market. They will be net importers of fuel for a very long time," said Mr Watson.

Shell and Total will today commission their $600m LNG port and re-gasification terminal in Hazira, Gujarat on India's west coast. Hazira is the country's second LNG facility; the other is Petronet's 5m tonne terminal also in Gujarat, which takes LNG from Qatar's Rasgas, a long-term deal estimated to be worth $800m.

The Gujarat State Petroleum Corporation, a gas transmission monopoly, pays about $3.40 per million British thermal units for LNG supplied by Petronet.

India's LNG imports are forecast to grow from 7.5m tonnes per year today to roughly 12m tonnes per annum by 2015.

Ray Marcelo, New Delhi

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