No spare LNG capacities till 2011, Australia tells India

New Delhi, Nov 21 (IANS) Australia Tuesday assured India that it would negotiate for long-term supply of liquefied natural gas (LNG) after production begins in its Gorgon fields in five years.
Development work of the offshore field in western Australia has been delayed due to issues regarding environment clearances, which are expected late in December, Australian Industry Minister Ian Mcfarlan told media after a meeting with Petroleum Minister Murli Deora here.
In India to scout for investments in the energy and other infrastructure sectors, Mcfarlan said Australia currently was not in a position to commit for any long-term supply of LNG.
India has sought 2.5 million tonnes of LNG from Australia for the regassification terminal being set up in Kochi by Petronet LNG, which already operates a five million tonne terminal at Dahej in Gujarat with gas from Qatar.
'LNG will be available only after 2011 when Australia will look to supply some of India's needs. The market will be very tight till then. We will be working on the contract-by-contract basis,' said the visiting minister.
'Once our (gas) production starts we will negotiate for long-term supply contract with India,' he said.
According to Deora, Mcfarlan has indicated that India could expect a better indication of the supply situation in two years as Australia has sold most of its existing capacities to China and Britain.
'In the meanwhile, either the petroleum or the mines ministry will sign a memorandum of understanding with Australia for cooperation in exploration and mining activities,' said Deora.
Several of state-owned Indian companies including GAIL (India) Ltd are seeking entry into the Australian exploration sector with an eye on tying up gas supplies.
© 2006 Indo-Asian News Service

New Delhi, Nov 21 (IANS) Australia Tuesday assured India that it would negotiate for long-term supply of liquefied natural gas (LNG) after production begins in its Gorgon fields in five years.
Development work of the offshore field in western Australia has been delayed due to issues regarding environment clearances, which are expected late in December, Australian Industry Minister Ian Mcfarlan told media after a meeting with Petroleum Minister Murli Deora here.
In India to scout for investments in the energy and other infrastructure sectors, Mcfarlan said Australia currently was not in a position to commit for any long-term supply of LNG.
India has sought 2.5 million tonnes of LNG from Australia for the regassification terminal being set up in Kochi by Petronet LNG, which already operates a five million tonne terminal at Dahej in Gujarat with gas from Qatar.
'LNG will be available only after 2011 when Australia will look to supply some of India's needs. The market will be very tight till then. We will be working on the contract-by-contract basis,' said the visiting minister.
'Once our (gas) production starts we will negotiate for long-term supply contract with India,' he said.
According to Deora, Mcfarlan has indicated that India could expect a better indication of the supply situation in two years as Australia has sold most of its existing capacities to China and Britain.
'In the meanwhile, either the petroleum or the mines ministry will sign a memorandum of understanding with Australia for cooperation in exploration and mining activities,' said Deora.
Several of state-owned Indian companies including GAIL (India) Ltd are seeking entry into the Australian exploration sector with an eye on tying up gas supplies.
© 2006 Indo-Asian News Service