Regional LNG: India's GAIL eyeing LNG supply from Australia

Indian utility firm GAIL (India) Ltd. is looking to buy around 5 million to 7 million metric tons of liquefied natural gas from Australia, Chairman Proshanto Banerjee said Monday as quoted by agency.

"We are currently in talks with North West Shelf, Woodside and Gorgon for the supply of LNG for our projects in India," he told reporters after meeting with visiting Western Australian Premier Geoff Gallop.

"We are looking at a long-term arrangement of 10 to 15 years for LNG supplies from Australia," said Banerjee.

GAIL is willing to renegotiate the price of LNG from Australia every three to five years, he said.

"If our negotiations are successful, we should get the Australian LNG next year," he said.

GAIL may invest up to $500 million in exploration and production ventures in Australia, as well as in LNG liquefaction ventures there, Banerjee said.

The proposed investments will be made over three to five years, he said.(*)