Should the PNG LNG project get the go-ahead from the government, LNG sales are expected in late 2013 or early 2014.
India's Economic Times newspaper reported Indian Oil as negotiating a price of $6 per metric million btus, while it said the international price is hovering over $10/mmbtu.
Indian Oil planning and projects director BM Bansal said LNG would be imported at their proposed terminal at Ennore, India.
"Indian Oil and Petronet are jointly pursuing to buy LNG from ExxonMobil so that we do not approach the same seller separately, resulting in price rise," he said.
Indian Oil has a 12.5% stake in Indian energy firm Petronet LNG, which has set up the country's first LNG receiving and regasification terminal at Dahej, with a nominal capacity production of five million metric tones per annum.
The newspaper also reported Indian Oil as having an interest in AGL Energy's stake of PNG LNG, with AGL previously signalling their intention to exit the project to concentrate on the Australian electricity industry.
