Date:06/05/2004 URL: http://www.thehindubusinessline.com/2004/05/06/stories/2004050602760600.htm

Back ONGC to set up five retail outlets in current fiscal

Our Bureau

Mumbai , May 5

OIL and Natural Gas Corporation (ONGC) plans to set up around five retail outlets in 2004-05. The company is also planning to set up a LNG terminal at Mangalore besides a power plant.

``We will set up five or less retail outlets in the current fiscal to test the markets before we go for a roll-out,'' said Mr Subir Raha, ONGC Chairman and Managing Director, on the sidelines of a CII seminar here.

Mr Raha said ONGC would not merely duplicate the present marketing set up but would first firm up its brand `ONGC Values'. It has a licence to set up about 1,100 retail outlets while its subsidiary MRPL can set up 500 outlets.

The company has backed Petronet LNG Ltd's bid for supplying gas to the Bidadi power plant and would be setting up a LNG terminal at Mangalore. The company is in talks with suppliers and potential customers for the gas, he said.

The capacity for LNG terminal has not yet been decided but gas liquefaction capacities worldwide are more than seven million tonnes, he said. The projected demand for gas in medium to long term range in India would increase three to four times the present availability in the coming five years, he said. He also said that Japan had 29 LNG terminals, and China and US were planning a huge LNG expansion.

Current petrochemicals demand in the country was less than two kg of per capita against the global average of 40 kg per capita.

Mr R.S. Butola, OVL's Director (Finance) would succeed Mr Atul Chandra as Chairman OVL. A formal announcement would be made shortly, he said.