NEW DELHI -- Oil & Natural Gas Corp. is considering the possibility of setting up a terminal to handle liquefied natural gas in the south Indian city of Mangalore in a joint venture with Bharat Petroleum and Mitsui & Co., the state-run explorer's chairman said Wednesday.
India is increasing its import of liquefied natural gas to meet a domestic supply shortfall. Many companies are setting up LNG terminals, which are specialized ports used to handle such imports.
"We have asked for a feasibility study to be conducted on the proposed LNG project. We will be able to comment more only when the report comes in," Sudhir Vasudeva said.
ONGC, India's largest producer of crude oil, and Mitsui had last year signed an initial agreement to cooperate in the gas business.
Mr. Vasudeva didn't say how much the proposed LNG terminal would cost, but said a typical terminal which can handle 5 million metric tpy of LNG usually takes around $1 billion to build.
He said ONGC believes getting into the LNG terminal business is a right fit since the company is in the business of natural gas production.
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