Country?s largest LNG importer Petronet LNG Ltd (PLL) is in talks with Sonatrach of Algeria for a 25-year contract to import 1.25 million tonne of LNG per annum.
“PLL will shortly sign a long-term contract for import of 1.25 million tonne of LNG per annum for 25 years,” Algeria’s ambassador to India Noureddine Bardad-Daidj said at Assocham’s 10th Energy Summit here on Friday.
While the ambassador did not give any further details, Petronet officials said the agreement was not likely before next year and supplies would commence in 2011.
They said PLL was in talks with Algeria’s national oil company Sonatrach for LNG import from its under-construction Skikda LNG terminal. The 4.5 million-tonne LNG export terminal would come up by 2011.
Algeria holds world’s fifth largest gas reserves and is fourth largest exporter of LNG (behind Indonesia, Malaysia and Qatar). The vast majority of Algeria’s LNG exports go to Western Europe, especially France, Spain and Turkey.