Petronet is talking to RasGas of Qatar and Petronas of Malaysia for sourcing 1.2 to 1.5 million tonne of LNG annually to fire the 2,184 MW power plant, highly placed sources said.
Qatar has offered to give six cargos of LNG in 2006, which would be used to begin electricity generation from the 744 MW phase-I of the plant.
From 2007 Dabhol would need a firm contract of LNG supply as its second phase of 1,444 MW would also come on stream.
A meeting was held at the Cabinet Secretariat on Wednesday in the presence of National Thermal Power Corporation, Gas Authority of India Ltd and major lenders to Dabhol Power project.
The government, sources said, is keen to rope in Petronet LNG for completing the 85 per cent complete LNG regassification and storage facility at Dabhol in Maharashtra.
Petronet, however, wants a contract with the Ratnagiri Gas and Power Ltd specifying a fee that it would charge for the job.
Petronet wants equity in the project in lieu of sourcing LNG for project promoters NTPC and GAIL and if that is not possible it would seek a fee for the job, the sources said.