India offers 10% stake in Petronet to Qatar

India today offered Qatar a 10% stake in Petronet LNG Ltd to get the world's largest liquefied natural gas exporter to sell 18 more LNG cargoes this year and agree on a long-term supply deal for meeting fuel needs of beleaguered Dabhol power plant.

Qatar has committed to sell six 'loose' LNG cargoes in the first half of the current year and it may export an additional 18 cargoes on Petroleum Minister Murli Deora's request.

"Deora requested for extra cargoes and I simply can't say no to him," Qatari Oil Minister Abdullah bin Hamad al-Attiyah told PTI in an interview.

Deora did some breakfast diplomacy with Attiyah to get commitment for additional cargoes this year and further made a plea for 2.5 million tonnes of LNG on a long-term contract for the 2,150 MW Dabhol power plant in Maharashtra.

"Qatar has been our most trusted and reliable friend and we hold this friendship in high esteem. It has come to our rescue several times in past and I am confident Attiyah will not disappoint us when we desperately need fuel for Dabhol," Deora said after the meeting.

Deora doled out a 10 per cent stake to Qatar Petroleum in Petronet, a proposal to which Attiyah said, "Our companies will certainly examine (the offer)".

"It will be done through Qatar Investment Board," he said.

Qatar had in 2004 offered Indian firms a five per cent stake in Qatar Petroleum but Oil and Natural Gas Corp (ONGC) which was assigned to pick up the equity hesitated in making the $135 million payment. The stake is now worth $1 billion.