Qatar Petroleum keen to buy stake in Petronet LNG

Qatar Petroleum keen to buy stake in Petronet LNGEnergy giant Qatar Petroleum International (QPI) has expressed its interest to acquire a 5.2 per cent stake in India's importing firm Petronet LNG, from Asian Development Bank (ADB).

The new reports about the Persian Gulf country's state-run energy firm's interest in Petronet LNG followed Qatar's Minister of Energy & Industry Mohammed bin Saleh Al-Sada's November announcement in which he had confirmed that he had wrote to India's Oil Minister M Veerappa Moily acknowledging QPI's plans to buy a stake in Petronet LNG.

Saleh Al-Sada had also acknowledged that QPI and ADB, with support from Petronet had already engaged in preliminary discussions over the possibility of stake sale.

In his letter to the Indian Minister, Saleh Al-Sada wrote, "I have personally endorsed QPI to move forward as it will be a milestone for strengthening mutual cooperation between our countries."

QPI own majority stakes in QatarGas and RasGas that along with other LNG suppliers in the world compete to sell fuel to India. If QPI manages to acquire the 5.2 per cent stake plus a board position in Petronet, it will gain an undue advantage over other rival suppliers as it will be privy to fuel price and other negotiations.

QPI owns 70 per cent stake in RasGas, which supplies 7.5 million tonnes of LNG to Petronet on a long-term contract.

The ADB had offered to sell its 5.2 per cent stake in Petronet in August last year. Each of IOC, GAIL, ONGC and BPCL own 12.5 per cent stake plus the right of first refusal in Petronet.