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
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
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