By Nidhi Verma
NEW DELHI (Reuters) – India’s Hindustan Petroleum Corp (HPCL) has signed an initial pact for sourcing gas for utility company NTPC Ltd, HPCL Chairman Rajneesh Narang said on Wednesday. The two companies will explore collaboration for liquefied natural gas (LNG) sourcing as India’s gas-based power generation rises during summers, he said.
“We have to work the modalities for a firm contract,” Narang told Reuters. HPCL owns a 5 million tons per year LNG import terminal at Chhara in western India. Under the pact, NTPC will either book capacities at the terminal or hire LNG tankers there, HPCL chairman said. The companies would also explore joint sourcing of LNG, he said. NTPC produces a quarter of India’s electricity generation and has the potential to consume 6.9 million tons of gas per year, the official said.
(Reporting by Nidhi Verma in New Delhi; Editing by Mrigank Dhaniwala)
