Technical Problems Delay Oman's Gas Delivery to India
Oman LNG said on Wednesday that its first delivery of liquefied natural gas (LNG) to India-based Dabhol Power Co. would be delayed until next year due to technical problems, reported the Gulf Daily News.
"The first delivery is now scheduled for February 2002, but there are no contractual problems with Dabhol," Oman LNG chief executive Graham Searle said of the shipment, which was expected to take place in November.
"We are aware of their problem and we are discussing it with them," Searle said.
Dabhol, 65 per cent owned by Enron Corp. of the US, has been locked in a payments battle with India's Maharashtra State Electricity Board.
The dispute has halted work on the second phase of the $2.9 billion Dabhol power plant project.
Oman and Abu Dhabi were involved in contracts for LNG for the second phase of the project, said the paper.
Oman LNG in 1998 signed a 20-year agreement to sell 1.6 million metric tonnes per year of LNG to Dabhol with the first shipment due in November.
The Omani government owns 51 percent in Oman LNG and Royal Dutch/Shell has a 30 percent stake. Other stake holders are TotalFinaElf, Korea LNG, Partex, Mitsui, Mitsubishi and Itochu Corporation.
Oman LNG, which shipped its first LNG cargo in April 2000 to South Korea, said it had exported its hundredth cargo on Tuesday with a shipment of 125,000 cubic meters to Spain's Gas Natural as part of a short-term agreement – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)