Mobil and RasGas Selected for Petronet LNG Supply in India

10 September 1998

Mobil and RasGas Selected for Petronet LNG Supply in India

    FAIRFAX, Va.--Sept. 10, 1998--Mobil Corp. and Qatar General Petroleum Corp. (QGPC) announced that Mobil and the companies' RasGas joint venture have been selected by India's Petronet LNG Ltd. to supply liquefied natural gas (LNG) and be partners in developing LNG receiving terminals in India.
    RasGas, the Ras Laffan Liquefied Natural Gas Co., is a joint venture established in 1993 by QGPC (70%) and Mobil (30%).
    Final details still need to be negotiated, but under the proposal RasGas is to supply 7.5 million metric tons annually (MMTA) to India over at least a 20-year period. Under the proposal, RasGas will supply 5 MMTA of LNG to Dahej, in the state of Gujarat and 2.5 MMTA to Cochin, in the state of Kerala. The proposal also includes plans to construct receiving terminals in Dahej and Cochin.
    First deliveries are targeted for 2002, however this schedule could be advanced by utilizing Mobil's Shipboard Regasification Terminal (SRT) technology.
    Mobil and RasGas officials are scheduled to begin discussions this month with Petronet on the details of the commercial agreements. Petronet, a central government sponsored joint venture, selected Mobil-RasGas based on a rigorous evaluation of seven commercial proposals.
    "We are very pleased to have been chosen by Petronet to proceed with this project," said Ron Billings, president of Mobil Global Gas and Power. "Mobil's outstanding track record in developing LNG projects, the RasGas LNG supply and our leadership in technology played a key role in our selection for this important program."
    Mobil has been involved with the liquefied natural gas industry since its beginnings in the Asia Pacific region in the early 1970's and has maintained a leading role in its successful expansion.