BG Group Plc on Friday said it is considering National Thermal Power Corporation's demand for 26 per cent holding in its proposed Pipavav LNG import terminal which will help it secure the latter's gas supply contract.

"NTPC said it wants 26 per cent stake in the import and regassification terminal as part of the supply tender. We are considering the proposal," Nigel Shaw, chief executive of BG India, said in New Delhi. He declined to give further details.

Shaw, however, said BG India will bid for the supply of 3 million tonne a year of gas to fire NTPC's power plants at Kawas and Gandhar.
 
He also said that BG will be submitting technical and price bid for LNG supply and regassification plant on September 2. Technical bids for the tender will be opened in September, and the price bids a month later.
 
Shaw said that BG and its local partners, ONGC and Reliance Industries, have plans to invest around $140 million over 18 months to develop the Panna Mukta and Tapti oil and gas fields and to enhance crude and gas production from these fields.
 
"We have cleared an investment plan of $140 million in the first phase of the expansion," Shaw said.
 
The investments will be made in proportion to the partners' equity -- ONGC owns 40 per cent, while 30 per cent each is held by Reliance and BG.
 
The phase-I investment plan, awaiting government approval, is aimed at enhancing crude production from Panna-Mukta fields to more than 30,000 barrels per day by the end of next year as against the current 25,000 barrels per day.
 
Gas production from the Tapti field will be enhanced by around 2-2.5 million standard cubic metres per day as against the current 6 mmscmd.
 
Shaw said the project involves drilling in four in-fill wells at Tapti and seven wells at Panna-Mukta. Another 11 in-fill wells can be drilled at Panna-Mukta, he added.
 
In the second phase, which will be undertaken between end-2004 and 2007, the partners will invest an additional $450 million to further enhance gas and crude production.