Date:08/11/2006 URL: http://www.thehindu.com/2006/11/08/stories/2006110802561700.htm

Business

ONGC forms venture with ALPS

Special Correspondent

LNG will be sourced at competitive prices from Iran, Qatar and the UAE

NEW DELHI: The Oil and Natural Gas Corporation has entered into a tie-up with the Hinduja group for cooperation in the area of liquefied natural gas (LNG).

It signed a memorandum of understanding here on Tuesday with the Hinduja group company, Ashok Leyland Projects Services Ltd. (ALPS), to form a joint venture.

The company is expected to explore prospects of sourcing LNG from Iran, Qatar, Kuwait, Libya, Oman, Saudi Arabia and the UAE. ONGC will hold 49.98 per cent stake in the venture with ALPS getting 48.02 per cent. The balance two per cent would be held by banks and financial institutions. This is on the same lines as the arrangement by ONGC with Mittal Steel. The MoU between ONGC and ALPS provides for sourcing of LNG at competitive terms. Speaking on the occasion, ONGC Chairman and Managing Director R. S. Sharma said the combined strength of the two entities would help provide a fillip to the energy security of the country. Sanjay Hinduja, representing the Hinduja group, said the joint venture, once formed, would aim at bringing concrete results as envisaged in this collaboration.