NEW DELHI India is shortly to enter into a new relationship with the Persian Gulf region when it is likely to finalize a deal for the import of LNG from Qatar. During the three-day visit of the Emir of Qatar to India next week, it is expected that India will formalize an agreement with Qatar to import 7.5 million tons of liquified natural gas (LNG). The deal, which will be India's first large scale import of gas, is expected to enable India to generate 8000 mw of power annualy for 25 years.

The envisaged deal underlines the importance Qatar attaches to India as a major market for its gas reserves, the third largest in the world after Iran and Russia. The deal also indicates India's keenness, which already imports crude oil from the Persian Gulf countries to the tune of 8 billion dollars, to further solidify its commercial and strategic links with the Persian Gulf region to meet its growing energy requirements.

According to projections, the gas demand in India will rise to 188 million cubic meters per day (mcmd) in 2004-05 and 283 mcmd in 2009-10. The current availability, at about 68 mcmd, falls short of the present demand of about 95 mcmd. Iran, Qatar, UAE and Yemen have been identified by a study to be among the possible sources of LNG supply for a major LNG import project on India's eastern coast.

Efforts for LNG imports, which will be shipped to India, gathered momentum after the failure of attempts to work out plans to bring natural gas through pipelines from Oman and Iran. Strained Indo-Pak relations, besides financial problems, have hampered the pipeline project. (IRNA)