MUMBAI: Japan based Mitsui OSK Line led consortium has initiated 'exploratory steps' for deploying Enron-promoted Dabhol Power Company's (DPC) $220 million liquefied natural gas (LNG) carrier 'Laxmi' in international spot market due to delays in completion of the project.

"LNG is an emerging fuel in international spot market and the consortium has already initiated exploratory steps. The reserves for winter season would be filled soon and there is lot of demand for such vessels," shipping industry sources said here on Saturday.

"The multinational has already diverted its focus more on the futures trading aspects of the fuel. Given the present uncertainties, there is an unwarranted delay in the project, and so the carrier 'Laxmi' would be used for chartering the natural gas to other countries from the Middle East," they explained.

Enron's $800 million LNG terminal at Dabhol is almost complete and 'Laxmi', the 1.35 lakh cubic metre vessel, is being constructed at Japan's Mitsubishi Heavy Industries shipyard, sources said, adding the carrier and was supposed to be commissioned in November this year.

'LNG Laxmi' is owned by Greenfield Holding Company Ltd (GFHL), a joint venture with Mitsui OSK Line holding a majority 60 per cent stake, and 20 per cent each for Enron India and Shipping Corporation of India.

Industry sources said that as per the 20 year free on board agreement, signed a year ago between DPC and GFHL, the US energy major would take supply of LNG at a daily charter hire of $98,000.

"These hire rates are bound to hit MSEB by over $250 million in a span of 20 years, as according to the PPA, gas transportation charges are a pass-through," industry sources warned.

GFHL is registered in Malta and 'LNG Laxmi' is expected to carry two million tonnes of LNG per annum to Dabhol to fire the power plant.

The LNG terminal, which has a storage capacity of five million metric tonnes of natural gas per year, would re-gassify the fuel to DPC and the remainder would be supplied to other bulk users.

For LNG supply, DPC has signed a 20-year contract for 2.1 million tonnes per year of the fuel with Oman LNG (1.6 million tonnes per year) and Abu Dhabi gas liquefaction company (480,000 tonnes per year), they added. (PTI)

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