State-owned Gail India Ltd, which has been given the task to source fuel for restarting the Dabhol power project in Maharasthra, is talking to LNG suppliers in Qatar, Australia, Malaysia, Oman and UAE.
"We are in advanced negotiations with suppliers in Qatar, Oman, UAE, Australia and Malaysia. We hope to tie-up LNG soon," GAIL chairman and managing director Proshanto Banerjee told reporters in New Delhi.
The 2,184 MW Dabhol project, shut since June 2001 over payment dispute with its principal buyer Maharashtra, needs 2.1 million tonnes of liquefied natural gas per annum.
GAIL plans to import 0.64 million tonnes LNG in 2006 to fire 740 MW Phase-I and 2.83 million tonnes in 2007 when the 85 per cent complete 1,444 MW Phase-II also comes on stream.
Banerjee said GAIL anticipates that it would be able to complete the 5 million tonnes a year capacity LNG terminal adjacent to the power plant in 12 months.
National Thermal Power Corp, which is to complete the unfinished portions of the power plant and operate it, would restart the Phase-I by July 2006 and complete the 1,444 MW Phase-II by end 2006.
Asked if LNG suppliers were quoting a price of about $7 per million British thermal unit, he said: "We are in discussions with the suppliers."
GAIL had previously projected power from the plant to cost Rs 2.3 to Rs 2.5 per kwh (unit) at ex-ship LNG price of between 3.65 and 4.25 dollars per mBtu.
Industry sources said RasGas of Qatar, which is being courted by GAIL for supplies for the 740 MW Phase-I, has offered a price of 7.5 dollars per mBtu.