New Delhi, Sept 15 (NNN-PTI) -- After seeking more crude oil and gas from Nigeria and Qatar in recent years, India is now seeking liquefied natural gas (LNG) from Algeria and has also evinced interest in upstream activities in that country, the world’s second biggest exporter of LNG behind Indonesia.
Petroleum Minister Murli Deora, who was in Vienna for the third OPEC conference, met Algerian Minister for Energy and Mines Chakib Khelil on the sidelines of the meeting on Wednesday.
"During the meeting, the Minister expressed interest for purchasing LNG from ALgeria," a petroleum ministry official said.
Algeria, an OPEC member, is in the process of developing its LNG capacity, which is currently 26.5 Bcm/year. India on the other hand has been scouting for new gas sources to satisfy its power plant requirements.
India and Algeria have signed a Memorandum of Understanding (MoU) to study the possibility for joint exploration and development of oil and gas block 242 in the Illizi Basin in the southeast of Algeria. India is also trying to corner some LNG that may be available from Sonatrach in the 2007-09 period.
Deora also said ONGC Videsh Ltd (OVL), the overseas arm of ONGC, in partnership with state-owned Sonatrach will bid in the proposed offering of exploration blocks in Algeria. OVL had teamed up with Sonatrach for exploring oil blocks in Algeria as well as third world countries.
Algeria is to launch its seventh round of bidding for 15 prospective blocks in the fourth quarter of 2006. Taking advantage of the MoU, OVL is likely to ask Sonatrach to team up with it to bid for the blocks.