According to company sources, Oil India (OIL) has appointed a consultant to prepare report on its proposed
2.5-million tonne (mn t) liquefied natural gas (LNG) receiving terminal in the country.
Geneva-based Foster Wheeler AG is said to be the firm that bagged the consultancy contract for the project, which marks OIL’s foray into imported gas.
With the proposed LNG terminal, the company will join the league of Petronet LNG (PLL) and Shell India, two gas importers in the country. OIL is a government-owned oil and gas explorer with interest in 65 domestic and 20 overseas blocks.
The consultant would also look at the feasibility of scaling up the capacity to 5 mn t. The terminal will have two LNG storage tanks of 160,000 cubic metres each besides regasification facility, a jetty and associated marine facilities.
In a recent report, the Boston Consulting Group (BCG) said that a temporary spike in supply, driven largely by the shale-gas boom in the US and that countryÂ’s commensurately lower demand for LNG, has created a window of opportunity for India to source LNG through 2015 and beyond on relatively attractive terms.
The window is expected to last one or two years and will close as recontracting of LNG supply by major Asian countries gathers speed.
Besides OIL, its bigger peer Oil and Natural Gas Corporation (ONGC) is also keen to enter the LNG business.
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