Oil and Natural Gas Corporation has decided to go slow on its foray into retailing. It plans to set up only three retail outlets in 2004-05.

Subir Raha, Chairman and Managing Director, ONGC, said: "The company will set up three-four retail outlets. We are doing it at a slow pace. This is to test the market with existing players in the retail market and new players (private and multinationals) as competitors. We will check customers reaction, see what is right and do corrections before rolling out."

ONGC has government approval to set up 1,100 retail outlets while its subsidiary MRPL has the licence to roll out 500 outlets across the country. Raha said the company did not intend to merely duplicate marketing and distribution as other companies but will look at a paradigm shift of systems and strengthen its brand 'ONGC values.'

He was speaking to mediapersons on the sidelines of a CII seminar on "Globalisation strategies for Indian manufacturing" in Mumbai on Wednesday.

ONGC was also looking at diversifying into power, petrochemicals and setting up of a liquefied natural gas terminal at Mangalore.

Raha claimed ONGC is discussing with potential suppliers of LNG as well as customers for the gas. "We are looking at gas based opportunities in Mangalore which includes power and petrochemicals," he said.

The company proposes to set up an LNG terminal on the Mangalore coast and a gas-based power plant. While refusing to divulge details regarding the size of the power plant, Raha claimed ONGC's plant will take the anchor load of LNG from the Mangalore LNG terminal.

Raha claimed that Japan has about 29 LNG terminals, US has 4 LNG terminals with plans to add another 25 LNG terminals while China has commissioned one LNG terminal. India's first LNG terminal was commissioned in February 2004.

Pointing out that the company will come to a conclusion on the size of the LNG terminal, power plants and the foray into petrochemicals in a few weeks, Raha said: "The LNG terminal would be of most economic size."

On small and medium oil fields for exploration offered by ONGC, Raha said ONGC has offered 19 offshore fields and was talking to vendors for developing them. "The fields will be awarded in December 2004", he added.

Butola to be OVL chief

RS Butola, director (finance) of OVL, will be the new chairman of ONGC Videsh, the international arm of Oil and Natural Gas Corporation (ONGC). Butola will succeed Atul Chandra who recently retired from the post of OVL chairman. A formal announcement is expected shortly, Raha said.