India looking at Iranian LNG

India is looking at the option of receiving liquefied natural gas from Iran at Petronet LNG Ltd's Dahej and Kochi terminals if Qatar is unable to meet its demand for additional natural gas.

Gail India and Indian Oil Corporation had entered into a 25-year agreement with National Iranian Gas Export Corporation to buy 7.5 million tonne LNG from Iran beginning 2009.

PLL plans to expand capacity at its Dahej terminal in Gujarat to 10 million tonne from 5 mt. It is in the process of setting up another terminal at Kochi with a capacity of 2.5 mt which will be later expanded to 5 mt.

This means that an additional 7.5 mt LNG would be required once the Kochi terminal becomes operational since the 1999 contract with Qatar's RasGas was for only 7.5 mt.

Officials said Qatar does not have additional gas capacity since all of it has been tied up but with PLL requiring the additional supply only in 2009, Qatar could be in a position to supply more gas, said a PLL executive.