Royal Dutch/Shell seeks to acquire Enron's LNG terminal in India - BBC

Royal Dutch/Shell has emerged as a possible buyer for Enron Corp's $2.9bn liquefied natural gas terminal in India, the BBC reported, quoting a Shell spokesman.

"LNG is the fuel of the future. We believe there is a sizeable market for LNG in India," the spokesman said.

The group's current proposal is only for the LNG plant. However, "it does not mean we could not consider the power project in the future if offered," he added.

The Gas Authority of India and BG Group are also thought to be interested in the LNG terminal, while Tata and Reliance Industries' BSES are interested in the whole power project, the BBC said.

The LNG terminal is run by India's Dabhol Power Co, which is 65% owned by Enron.

Enron's Indian operations have already been hit by a local dispute over its charges for power. Dabhol owes billions of dollars to Indian banks, who - if a buyer cannot be found quickly - could be badly hurt, the report said.