Date:08/11/2007 URL: http://www.thehindu.com/2007/11/08/stories/2007110856541700.htm

Business

GAIL seeks stake in Nigerian LNG plant

Special Correspondent

Keen to set up a gas-based petrochem unit

— PHOTO: PTI

GAS station: Union Minister for Petroleum and Natural Gas (PNG), Murli Deora (centre), Secretary, PNG, M. S. Srinivasan (left), and ONGC Chairman and Managing Director, R. S. Sharma, at a conference in New Delhi on Wednesday.

NEW DELHI: Scouting for new sources to cope with the increasing demand for gas within the country, state gas utility Gas Authority of India Limited (GAIL) is actively seeking a stake in a liquefied natural gas (LNG) plant in Nigeria. It has also expressed interest in setting up a gas-based petrochemical plant in the West African nation.

National Thermal Power Corporation (NTPC) had already signed an MoU with the Nigerian Government to set up power plants in that country in return for natural gas for its projects in India.

“We are interested in sourcing LNG from Nigeria and will be interested in taking a stake in future LNG manufacturing plants in that country,” GAIL Chairman and Managing Director, U. D. Choubey, said after meeting the visiting Nigerian Vice-President, Jonathan Goodluck, during the India-African hydrocarbon conference. GAIL is scouting for LNG for the 2,184 MW Dhabol power plant in Maharashtra and also trying to bridge the gas deficit in the country. At the same time, Mr. Choubey said GAIL expressed interest in setting up a gas gathering station and creating a gas pipeline network in the African nation. “We also expressed interest in participating in oil and gas field and will bid for oil and gas blocks offered by Nigeria in future,” he added.

The state-run company proposed to set up a network to dispense CNG to automobiles as well as a city gas distribution network. Mr. Choubey said depending on the gas composition, GAIL could also think of setting up a petrochemical plant in Nigeria.