PETRONET LNG CALLS FOR A CONSORTIUM OF OIL COMPANIES TO ACQUIRE & BUILD ACREAGES ABROAD INCLUDING INDIA, SAYS ITS MD & CEO

ALSO PROPOSES TO CONVERT ANDAMAN & NICOBAR’S ECO-SYSTEM FROM DIESEL TO GAS

Managing Director & CEO, Petronet LNG Limited, Mr. Prabhat Singh on Thursday floated a proposal for creation of a consortium or SPV (special purpose vehicle), consisting of companies such as Petronet LNG Limited, GAIL, ONGC, EIL and OIL to jointly bid for prospective properties for exploration of natural gas and as well setting up of LNG terminals in overseas fields, particularly those of Sri Lanka, Bangladesh and the like.

Inaugurating a conference on “How to Survive in Low Oil & Gas Price Scenario” under aegis of PHD Chamber of Commerce and Industry here today, Mr. Prabhat Singh also disclosed that his company has offered to convert the fossil fuel fed economy of Andaman & Nicobar with that of natural gas, stating that such a proposal has already been submitted to the Lieutenant Governor of the Island.

The Petronet LNG and administration of Andaman & Nicobar Island were progressing satisfactorily on the subject as the latter is suitably inclined to convert its eco-system with cleaner fuel rather than staying on to diesel fed economy, he indicated.

Elaborating on the issue of proposed consortium or SPV, Mr. Singh hinted that it has been conceived by the Petronet LNG at a time when the company expects that the prevailing scenario of low oil and gas price would stay on for another five years and that to thrive on such circumstances, the consortium and SPV approach of national oil companies would be ideal situation to acquire oil & gas including terminal acreages and assets overseas including India.

According to him, the Ministry of Petroleum and Natural Gas is aware of it and that the Ministry’s intent is also there on it without disclosing a definite roadmap to convert it into reality.  “The idea has been briefly floated and discussed and its conclusiveness should follow as India would be bidding to acquire gas properties and to build LNG terminals in countries like Sri Lanka and Bangladesh for which if India proceeds with collective approach, it would establish and edge over others”, said Mr. Singh adding that such an approach is also called for under prevailing circumstances to building energy storage facilities and other such assets domestically.

Speaking on the occasion, Executive Director-Corporate Planning, ONGC, Mr. Yash Malik pointed out that collaborative approach of national oil companies is the right solution to creating oil and gas assets in India to enable it thrive under the low oil and gas price regime, articulating that Indian oil sector needs a fiscal regime better than what prevails currently.

Mr. Malik also pointed out that in the low price scenario of oil and gas, his company is successfully going ahead with joint venture approach.

Chairman, Hydrocarbons Committee, PHD Chamber, Mr. Rajeev Mathur said that the gas sector has been successfully confronting with the challenges of the emerging time.

Among others who were present on the occasion comprised Co-Chairman, Hydrocarbons Committee, PHD Chamber Mr. H P S Arora along with the Secretary General and Director, PHD Chamber, Mr. Saurabh Sanyal and Dr. Ranjeet Mehta.