NEW DELHI: India has asked Qatar for an additional ten million tonnes of liquefied natural gas (LNG) while offering an equity stake in the LNG terminal of the Dabhol power plant. This was disclosed here on Thursday by the Petroleum Secretary, M. S. Srinivasan, after the Qatar Finance Minister, Yusuf Hussain Kamal, met the Petroleum Minister, Murli Deora.

Mr. Srinivasan told newspersons that there was a positive response to the Indian proposal and the additional fuel meant mainly for power plants was expected to be imported by 2010-11. India has an agreement with Qatar for import of 7.5 million tonnes of LNG annually, of which five million tonnes are already being received at the Dahej terminal. Qatar was considering participation in the National Thermal Power Corporation's (NTPC) Kayamkulam project in Kerala, besides the Oil and Natural Gas Corporation's (ONGC) upcoming petro-chemical hub at Mangalore, he said.

The ONGC Chairman and Managing Director, R. S. Sharma, said his company had offered Qatar an equity stake in the aromatic and olefin complex coming up at Mangalore and might also offer a stake in the proposed LNG terminal near the complex.

He said the Qatar Investment Agency was considering an investment of $5 billion in energy-related projects in India.

Mr. Srinivasan said the deal with Qatar would ensure regular supply of LNG to Dabhol plant, which was facing start-up problems because of non-availability of fuel. He said the proposal for an equity stake in the LNG terminal, which had been hived off the main Dabhol plant, would envisage Qatar picking up Petronet LNG's $100 million foreign currency convertible bonds (FCCB). On conversion into equity shares, this would provide a 7.5 to 12.5 per cent equity stake in Petronet. Qatar would then be able to join Petronet in making an offer to buy the hived-off LNG terminal.

The Petroleum Secretary said talks were already under way with Qatar for 2.1 million tonnes of LNG in the short-term to run the Dabhol power plant. He said the additional ten million tonnes could be utilised in the expanded Dahej terminal, the upcoming Kochi terminal or the Dabhol plant.

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