Disclosing CMS Energy's long-term commitment to south-east India, especially to Tamil Nadu, company officials said beyond getting 2.6 million tonnes of LNG from Rasgas in Qatar delivered to the LNG-terminal for the 1866 MW power project at Ennore, the effort would be to set up a distribution system including a pipeline network, storage and service and delivery systems to consumers.

According to vice president and managing director, CMS Energy Asia, Singapore, Brian Corbin worldwide LNG prices were on the decline and the company sees tremendous opportunity for offering gas to consumers in Tamil Nadu as an alternative to other fuels and at very competitive rates.

However much will depend upon how the demand from various consumers will shape up in the long-term. The LNG supply contract with Rasgas in Qatar does have an in-built take or pay clause but is flexible enough to allow the company to source gas from elsewhere if prices are found to be attractive.

CMS Enterprise US's senior vice-resident global development, Doris F Galvin said, "The company had worldwide experience in distribution work. It had a vertically integrated business and can handle pipeline, storage and distribution of gas. It is also looking into transmission and distribution of electricity as these too have been opened up for private participation."

For the Ennore LNG-cun-power project the company has brought in $90 million as its equity contribution towards the 26 per cent stake it holds in the project. The 235 mw GVK power project at Jagurupadu in AP in which CMS Generation has a 25.3 per cent stake is yet to get CEA clearance for capital costs and the three year delay has "deeply hurt" the company.