India considers Qatari investments in natural gas sector

India proposes a novel solution to its growing natural gas problem.

Facing a scarcity of domestic natural gas, India is considering inviting Qatar to invest in one of its largest natural gas projects to ensure gas supplies from the Middle Eastern country.

India’s Ministry of Power proposes Qatar take a stake in the Kayamkulam natural gas plant in Kerala run by state-owned NTPC Ltd, the largest state-owned electric utilities company. It discussed this proposal at a meeting of the Committee of Secretaries headed by Principal Secretary to the Prime Minister Pulok Chatterji.

Qatar Petroleum in 2010 had shown an interest in taking an equity stake in Kayamkulam but the deal did not advance beyond the discussion stage.

Qatar Petroleum is a state owned petroleum company that operates all oil and gas activities in Qatar, including exploration, production, refining, transport, and storage.

NTPC at the time was intent at expanding the plant’s capacity from 350 MW to over 1,000 MW but put plans on hold due to non-availability of natural gas. The company currently generates nearly 40,000 MW of power and plans to increase its capacity to 75,000 MW by 2017.