India to sign defence, security agreements with Qatar

Ammar Zaidi

Muscat, Nov 9 (PTI) India and Qatar will sign landmark
defence and security agreements when Prime Minister Manmohan
Singh visits the gas-rich nation Sunday evening.

Singh, on his first trip to the energy-rich Gulf region
in four-and-a-half years as Prime Minister, will meet Qatar's
Prime Minister Sheikh Hamad bin Jassem bin Jabr al Thani for
delegation level talks on enhancing trade, defence and energy
cooperation, officials said.

The defence cooperation agreement would include issues of
maritime security, while the pact on security and law
enforcement would cover issues like common threat perceptions
and sharing of data.

The security cooperation agreement would meet Qatar's
security concerns, but would be short of stationing of troops,
an official said, adding that the two nations under the
agreement would safeguard each others security interests.

The pact would entail joint training exercises.

Singh would Monday call on the Emir of Qatar Sheikh
Hamad bin Khalifa al Thani, who is also hosting a private
lunch for the Prime Minister and his wife Gursharan Kaur.

New Delhi is keen on buying an additional 2.5 million
tonnes of L.N.G. from Qatar to meet the growing energy needs
of industry.

Qatar being home to the world's third-largest gas
reserves, discussions there may feature a proposal of
state-run gas utility G.A.I.L. India Ltd to set up a mega
petrochemical plant in a joint venture with Reliance
Industries.

The G.A.I.L.-Reliance joint venture had earlier this year
sought rich gas from Qatar for the petrochemical plant, but
Doha had made no commitments, saying all its current
production was tied up.

Singh, prior to his departure to the Gulf region, had
said that India attached great importance to bilateral ties
with Qatar, which is one of the "largest and most reliable
suppliers of our energy needs from the region".

India currently buys 5 million tonnes a year of L.N.G.
from RasGas of Qatar under a long-term contract. The ex-ship
price of USD 2.53 per million British thermal unit (mmBtu )is
considered a 'steal' in current times of L.N.G. prices
breaching USD 20 per mmBtu.

An additional 2.5 million tonnes would be shipped under
the same contract from January, but Petronet L.N.G. Ltd, which
imports L.N.G. from Qatar, needs to tie up a similar quantity
to fill the gap after the capacity of its Dahej import
terminal in Gujarat is doubled to 10 million tonnes by March
next year.

Oman India Fertilizer Co (OMIFCO) needs 0.7 million
standard cubic metres per day (mmscmd) of gas for raising the
capacity to about 2.5 million tonnes a year from the current
1.65 million tonnes through de-bottlenecking at a cost of
about USD 125 million.

Indian Farmers Fertiliser Cooperative Ltd (Iffco) and
Krishak Bharati Cooperative Ltd (Kribhco) have a 25 percent
stake each in the company, while the remaining 50 percent is
with state-run Oman Oil Company.

It needs another 2 mmscmd for adding an additional 1.3
million tonnes for about USD 850 million. PTI ANZ