Look abroad for gas assets, says Pandian

Vol 17, PW 3 (05 Sep 13) News in Brief

Gujarat energy secretary DJ Pandian is advising power companies to focus on acquiring gas assets abroad to source LNG at cheaper rates.

Pandian made his remarks while delivering the closing address at the ‘Power Sector India Roundtable-2013’ conference hosted by the Pandit Deen Dayal Petroleum University (PDPU) near Gandhinagar on August 30. “Rather than paying $15 to $17/mmbtu, power companies can easily source LNG at $8 to $9/mmbtu if they start acquiring their own assets,” he said.

Pandian suggested Indian companies should look for stakes at assets in Africa, the US, Canada and Russia. He said the Indian government should be more proactive and set up a $10bn fund to acquire gas assets abroad.

He pointed to the US shale gas revolution and said Indian companies must not let that opportunity slip, especially since the US government has approved the setting up of 27 LNG terminals.

LNG Summit