Ras Laffan LNG of Qatar and US multinational Mobil LNG, had bid together for the LNG supply contract and were picked out of the seven bidders shortlisted from a global tender. A Petronet LNG release says that the government of Qatar had been ``supportive to the government of India and Petronet LNG for the supply of LNG to Gujarat and Kerala''.

Supplies of LNG from Qatar's vast reserves of natural gas actually found a mention in a memorandum of understanding (MoU) signed between the union petroleum ministry and its Qatar counterpart at Doha, in January this year. Rasgas-Mobil will now begin negotiations for purchasing five million tonne per annum of LNG for the proposed terminal at Dahej, in Gujarat and another 2.5 million tonne per annum of LNG for another terminal proposed at Kochi in Kerala.

The release saysPetronet LNG had already identified LNG consumers and planned to commission the terminals by the middle of 2002. It has signed an MOU with Essar Power for supplying 2.25 million cubic meter per day of LNG to Essar's Hazira power plant.

Petronet LNG will now finalise ``long-term LNG sale-purchase agreements for supplies to Dahej and Kochi'', in anticipation of liquefied natural gas replacing alternative fuels. Petronet LNG has received a letter of intent from the Gujarat government for the land at which the Dahej terminal should be set up.