Discussions have also been ongoing with the North West Shelf LNG consortium for short-term supplies of 500,000 tonnes, according to a Press Trust of India report.

GAIL is also negotiating sourcing at least one million tonnes of LNG per year from Qatar to begin operation of the 740 megawatt Phase-1 of the project, a senior company official said.

The 2,184MW Dabhol project has been shut since June 2001 over a billing dispute with its sole customer, the Maharashtra State Electricity Board. The government has tasked GAIL and National Thermal Power Corp with restarting the project.

GAIL said that about two million tonnes per year of LNG would be needed to fire the 740 MW Phase-I and 1,444 MW Phase-II, while an additional three million tonnes per year would be required for merchant sale.

Malaysia's Petronas has already agreed to supply 700,00Ot of LNG and Indonesia's BP Migas has also offered LNG for the project.

UK-based Whessoe LGA Gas Technology has been appointed to complete the LNG terminal.