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• Oil minister S Jaipal Reddy asked oil secretary GC Chaturvedi, who is also the chairman of Petronet LNG, to probe allegations that the company quietly switched to buying lean gas, which can only be used as fuel, instead of rich gas that can also produce petrochemicals and cooking gas (LPG)Oil minister S Jaipal Reddy has ordered a probe into changes made in a multi-billion dollar contract for import of liquefied natural gas (LNG) from Qatar, following allegations of foul play, reports PTI.
• Mr Reddy asked oil secretary GC Chaturvedi, who is also the chairman of Petronet LNG, to probe allegations that the company quietly switched to buying lean gas, which can only be used as fuel, instead of rich gas that can also produce petrochemicals and cooking gas (LPG), ministry sources said.Petronet insiders, however, said the allegations were not true as the company was getting about 6.5 million tonnes out of the contracted volume of 7.5 million tonnes a year as rich gas from RasGas of Qatar.
• While the entire 7.5 million tonnes was supposed to be rich gas as per the original contract signed in 1999, Petronet had altered the contract to advance supplies of second tranche of 2.5 million tonnes by a good five years, helping the nation save about a billion dollar every year.Sources said after some MPs raised the issue, Mr Reddy asked the secretary in his ministry to look into the matter.Petronet LNG, which is majority owned by state-owned oil companies, had in 1999 signed a contract with Qatar's RasGas to buy 7.5 million tonnes a year of natural gas that has been cooled to liquid form (LNG) so that it can be shipped.
• The contract, sources said, was for import of 5 million tonnes of LNG at Petronet's Dahej terminal in Gujarat and 2.5 million tonnes at its Kochi facility in Kerala. All of the 7.5 million tonnes of LNG to be supplied by RasGas was supposed to be rich gas, which contains compounds like ethane, propane and butane that are building blocks for petrochemicals and LPG.RasGas began supplies of 5 million tonnes a year of rich-LNG at Dahej in 2004. But supply of the remaining 2.5 million tonnes could not start as construction on Kochi terminal was delayed.
• Sources said in 2005, Petronet management realised that India needed gas to meet its fast expanding economy and so entered into negotiations with RasGas to advance the tranche-2 volumes of 2.5 million tonnes.They proposed to buy the entire 7.5 million tonnes a year of contract supplies at Dahej. But RasGas was not going to give into Petronet's demand so easily and stated that since all its production was committed, it can only supply lean gas or gas without ethane, propane, etc.Petronet agreed and signed a revised deal in 2006. But it did not settle for this and entered into new negotiations asking RasGas to give all of 7.5 million tonnes of rich-gas.RasGas relented and in 2008-09 agreed to supply rich gas for the second tranche quantity on best endeavour basis. It has been supplying about 1.5 million tonnes of tranche-2 quantity as rich gas since 2009.

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