GAIL may invest up to $500 mn in Australia

[inline:1]Mumbai--Expanding their horizon and business, Gas Authority of India Limited is going to invest heavily in Australia.

State-run gas monopoly GAIL (India) Ltd has said that it is planning to invest up to $-500 million over the next three to five years for gas exploration and liquefaction facilities in Australia.

The company is also hopeful of tying up 5-7 million tonnes per annum of LNG supplies with Australian firms by next year, a part of which could be used for restarting the Dabhol Power Plant in Maharashtra.

"We are interested in bidding for Australian blocks that are currently on offer...we may invest about 300-500 million dollars over 3-5 years for exploration, production and LNG terminals in Australia," GAIL Chairman and Managing Director Prashanto Banerjee said.

The company was seeking partners for exploration blocs in Australia, the bidding for which closes in March 2006, he said after meeting West Australia Premier Geoff Gallop.

The company is in talks with Gorgon, North West Shelf and Woodside in Australia for 5-7 MTPA LNG supplies, he said, adding he was "confident" of tying up for gas by next year.

The company, a joint venture partner in Ratnagiri Gas and Power Pvt Ltd that will now run Dabhol plant, is entrusted with securing LNG supplies for the plant.

The 2,150 MW Dabhol project is scheduled to begin operations by September 2006.