INDIAN state-owned gas utility GAIL India is in talks with InterOil for a possible stake in the second LNG project.
GAIL chairman and managing director B C Tripathi said in a statement posted at The Financial Express, an Indian-based business newspaper saying “We are still talking to them. Nothing has been concluded as yet.”
The Financial Express reported: “Papua New Guinea, an island in the southwestern Pacific ocean, last year granted initial approvals for its second LNG project, which would follow a plant proposed by an ExxonMobil-led venture.
“The venture would cost about US$5 billion (K13 billion) for a plant producing 3.5 million tonnes a year of LNG, with shipments due to start in 2014.”
Mr Tripathi said talks were still on and currently at its preliminary stage.
He did not disclose what percentage of stake GAIL could get in the project but it is believed that the percentage of stake and the price issues are still being discussed.
The business newspaper reported that InterOil is believed to have asked GAIL for a “resource payment” of US$ 5.03 billion (K14 billion) apart from equity contributions as strategic investors.