Petronet LNG had invited global offers for purchase of LNG for which it had received 17 bids. Seven major global players in LNG field, were shortlisted.

The SPA was signed by Suresh Mathur, chairman and managing director, Petronet LNG, and Youssef Hussain Kamal, minister of finance, economy and commerce, state of Qatar, on Saturday in London. Minister of petroleum and natural gas VK Ramamurthy was also present on the occasion.

The current reserves of Qatar, which holds the world's largest gas fields, are estimated to last over 300 years for supply of 25 mmtpa of LNG. The SPA provides for supply for a period of 25 years and exclusivity to Petronet LNG for Gujarat and Kerala.

The company has already completed the techno-economic feasibility study for both Dahej and Kochi projects.

According to a press release, it has already identified consumers for utilisation of LNG and is in the process of finalising EPC contractor. The financial closure of the two projects is scheduled to be completed by March 2000 and commencement of LNG supply by mid-2003.