New Delhi: UK's BP Plc is exploring options for importing liquefied natural gas (LNG) into India through its joint venture with Reliance Industries, a senior company official said today.
BP last year bought a 30 percent interest in 23 oil and gas of RIL for USD 7.2 billion and formed a joint venture with the billionaire Mukesh Ambani-run firm for sourcing and marketing of natural gas.
Alan Haywood, President for Downstream Gas and Head of Commercial Development at BP said the company was evaluating where to bring the LNG from. It wants to feed India's burgeoning energy demand.
"We are evaluating various options... We are assessing where is the best gas we can bring from," Haywood said on the sidelines of Petrotech 2012 conference here. "We are committed to sustainable gas supply to India."
BP is currently developing a huge LNG project in Indonesia named Tangguh, where it aims to produce around 7.6 trillion feet of LNG sourced from six offshore fields.
India Gas Solutions Pvt Ltd, BP's equal joint venture with RIL, has already been incorporated and will focus on gas sourcing and marketing, development of infrastructure for transportation and marketing of gas within the country.
Haywood did not say if BP-RIL combine may look at putting up a LNG import facility or would prefer to lease capacity in one or more the existing terminals for its imports.
Last month, BP India head Sashi Mukundan had stated that the joint venture would finalise investment plans for downstream gas sector in 2013.
Among the options before BP-RIL are setting up a fixed onland LNG import facility or a floating terminal off the east or west coast, or buying stake in existing and upcoming LNG terminals.
Haywood said BP was already in discussions for supply of gas to Indian consumers, but did not elaborate.
Asked about natural gas pricing in India, he said domestic rates should be such that it can stimulate investments.
Most of the domestically produced natural gas, including that of RIL-BP's eastern offshore KG-D6 fields, is priced at USD 4.2 per million British thermal unit, a rate which many in the industry now consider sub-market.
BP and RIL have been seeking revision in KG-D6 price, which the government had in 2007 fixed for first five years of production. KG-D6 field began production in April 2009.
PTI
