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
He said ONGC believes getting into the LNG terminal business
is a right fit since the company is in the business of natural
Dow Jones Newswires