Shell's Hazira terminal to sell gas by 2004-end

World's third largest oil firm Royal/Dutch Shell on Friday said its $600 million liquefied natural gas import and regassification terminal at Hazira will be commissioned in the second half of 2004 and hoped to make available gas at very competitive price by the year-end.

"We can make gas available to customers at a very competitive price than alternative form of fuels," Royal/Dutch Shell Group Managing Director Malcolm Brinded told a news conference in Hazira.

The company is investing $600 million in setting up LNG import, regassification and storage facilities at this port city. Two tanks of 160,000 cubic meters capacity will receive natural gas, liquefied at minus (-) 160 degree Celsius and transported in 135,000 cubic meter capacity tankers, from Oman, Malaysia, Australia and Russia, where Shell has equity stakes in gas producing fields.

"This is a very major investment (of Shell) in India. The $600 million investment shows Shell's confidence in future of India, its economic growth prospect, development of gas market and the Indian government," Brinded said, adding that India and China will be powerhouses of growth for the world.

The terminal will initially have a capacity of 2.5 million tonnes (around 9 million standard cubic meters per day) which will be doubled once demand picks up.

The company aimed at selling regassified LNG in Gujarat, Maharashtra and other neighbouring states, he added.