GAIL chairman UD Choubey said his company was talking with ExxonMobil and Algerian state-owned company Sonatrach about possible LNG supply deals for the Dabhol terminal and power plant in western India, according to the Financial Express.

GAIL director (business development) AK Purwaha said the LNG import and re-gasification facility adjacent to 2150MW Dabhol power plant in Maharashtra will be completed by November.

The Financial Express said the gas would be sourced from the Chevron-operated Gorgon development.

But a final investment decision has not yet been taken on this project and the gas could well be supplied from one of two other proposed projects – Scarborough/Pilbara LNG or an ExxonMobil-operated Papua New Guinea development.

Meanwhile, GAIL is also looking to partner with small and medium-size foreign companies to bid for exploration blocks in India’s seventh new exploration licensing policy (NELP-VII) bidding round, in addition to taking stakes in Australian leases.

India’s Livemint.com reports that analysts argue GAIL has the financial strength to bid on its own but also needs foreign technical expertise to win the blocks.

Livemint.com said GAIL was negotiating with small and medium-size companies from North America, the UK and Australia to partner for NELP-VII.

GAIL is also looking at acquiring stakes in overseas gas blocks and a source told the publication that Australia was a particularly good environment in which to operate.