Indian oil companies exploring Canada LNG investment opportunities
BY RAKESH SHARMA
NEW DELHI--India' s oil companies are exploring opportunities to invest in Canada' s LNG projects and import gas from there, junior oil minister R.P.N. Singh told lawmakers in a written reply in lower house of parliament.
"With huge shale gas discoveries in the United States and Canada," LNG imports could be cheaper than other sources, he said, but added that transportation and the mechanism of determining LNG prices could affect the economies of LNG imports. He didn' t provide more details on the companies' plans.
Oil India said it was looking at buying a stake in ConocoPhillips' oil sands assets. GAIL said it may spend as much as $1 billion over a year to acquire shale gas assets in the United States and Canada.
In a separate reply to lawmakers, Mr Singh said local gas output will fall short of demand by 292 MMcmpd standard by the fiscal year ending march 2015, adding that the shortfall will likely be met through LNG imports. With gas demand rising, companies are fast investing in expanding LNG terminal capacity and sealing deals to import the super-cooled fuel, Mr Singh said.
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