Details of talks with potential Dabhol LNG suppliers

Vol 9, PW 22 (23 Feb 06) Midstream & Downstream
     

Ratnagiri Gas is talking to six potential LNG suppliers to Dabhol.

Expect no progress with Oman until its earlier contract to supply LNG to Dabhol is commercially closed. Three meetings have been held with AdGas for between 700,000 t/y and 1.3m t/y LNG and a LoI has been signed for about 700,000 t/y subject to release by Tokyo Electric Power Company.

Another meeting with AdGas is scheduled for end February to discuss the Master Spot Sales Agreement. Ratnagiri Gas believes supplies from AdGas are likely only after 2007.

Five meetings have been held with RasGas of Qatar including one on 13th February. Qatar has offered six cargoes this year itself but the price is too high and discussions continue to bring it down.

Ratnagiri Gas wants between 700,000 t/y and 3.3m t/y from Qatar. In Australia three meetings each have been held with two LNG projects: North West Shelf Australia LNG and the Gorgon Project.

From North West Shelf, Ratnagiri Gas wants between 1m t/y and 2m t/y and between 2.5m t/y and 5m t/y from Gorgon. A confidentiality agreement has been signed with North West Shelf, which has indicated that 2m t/y will be available from Train 5 from 2008-09.

Preliminary discussions continue ahead of a Heads of Agreement and prices and final clearance is awaited from the North West Shelf consortium. A meeting has been tentatively scheduled for early March after the consortium finalises its marketing plan.

Talks with Gorgon concern supplies from 2011-12 when Phase-II goes into production. Working level discussions begin next month.

Five meetings have been held with Petronas for between 750,000 t/y and 2m t/y LNG and confidentiality agreement has also been signed. Petronas has offered 750,000 t/y from 2006-07 by diverting cargoes from Egypt, but the price is high.

Both sides have set an end-February target to sign a Master Spot Sales Agreement. Petronas has indicated long term supply of between 1.3m t/y and 2m t/y from Malaysia and 1.2m t/y from Iran.

Discussions will start after the Master Spot Sales Agreement is signed.