Gorgon talks close in on LNG price

Vol 11, PW 19 (07 Feb 08) News in Brief

A top-level Petronet-LNG team led by managing director Prosad Dasgupta left for Australia yesterday (Wednesday) February 6 to continue LNG import talks for its proposed Kochi terminal from the Gorgon LNG project.

Talks will be held on February 8 and 9, either at Melbourne or Perth, with ExxonMobil, which holds 25% of Gorgon. “The location depends on whether the Exxon team comes in from the west or east coast of America.

â€‌ What is on the agenda “All the commas and full stops in the draft agreement (for the long-term import of 2.5m t/y LNG) have been checked,â€‌ we hear. “This time we hope to move significantly forward on closing the price.

â€‌ If both sides agree on the price, the teams will return for approval to their respective boards. Approval of the crucial concession agreement with Kochi Port Trust, however, is still proving elusive, despite a “promiseâ€‌ that it will be signed by April 30.

Without this agreement the land cannot be mortgaged to raise money for the project.