The Qatar-based RasGas has said its third liquefied natural gas train is likely to be completed by the end of 2003. The train has been commissioned to supply Petronet LNG Ltd with 7.5 million metric tonnes per annum of LNG over 25 years for its two terminals at Dahej in Gujarat and Kochi in Kerala.

RasGas officials, who are in New Delhi for the international Petrotech 2003 conference, told Business Standard the company would begin the supply from Train 3 in the first quarter of 2004.

The initial supplies to Petronet would come from the existing RasGas trains, which were constructed by RasGas to meet its long-term sale and purchase agreement with Korea Gas Corporation for the supply of approximately 123 million tonnes of LNG over 25 years.

RasGas had signed the engineering, procurement and construction contracts in April 2001 for the construction of a third LNG train in order to meet Petronet's requirements. The new facilities will be rated for 4.7 mmpta of LNG, and with a small increment from RasGas' existing facilities, will supply Petronet's requirements.

Petronet LNG Ltd is a joint venture company promoted by Gail India Ltd, Oil and Natural Gas Ltd, Indian Oil Corporation and Bharat Petroleum Corporation Ltd, with an authorised capital of Rs 1,200 crore (Rs 12 billion) for setting up LNG terminals in the country.

Petronet had signed a sales and purchase agreement with RasGas in 1999 for the supply of 7.5 mmpta of LNG over 25 years. While 5 mmtpa will be for the Dahej terminal, 2.5 mmtpa will be for the Kochi terminal.

The selection was based on a strong commercial package, submitted jointly by RasGas and Mobil LNG Inc. RasGas has also offered support in developing the downstream infrastructure at both locations.

RasGas was established in 1993 to produce LNG and other related hydrocarbon products from Qatar's huge offshore field, the North Field.

Apart from the third LNG train, RasGas is constructing an offshore wellhead platform and export pipeline and also drilling additional wells. The foundation stone for RasGas' Train 3 expansion was laid on January 14, 2002.

Although the agreement with Petronet is RasGas' largest till date, the company is also working to develop Train 4 to supply LNG to Edison Gas of Italy under a sales and purchase agreement signed in June 2001.

The Dahej project of Petronet is likely to achieve financial closure by the middle of 2003. The company has decided to go in for non-recourse financing for the Rs 2,800 crore (Rs 28 billion) project.

Close to 70 per cent of the construction of the Dahej terminal is complete. The roof-raising of both the LNG tanks and more than 1 km of the 2.4 km jetty has been completed.