Total currently has two joint ventures in the country for liquified natural gas (LNG) import -- with Tata Electric Company (TEC) and Hindustan Petroleum Corporation Ltd (HPCL).

"Total is keen about the Indian LNG scene. The huge prospects of capacity addition in power generation in the country will create a large market for LNG," sources close to Total said.

They said the company expected upcoming power projects to emerge as prime consumers for LNG, which is a cost-effective and less polluting alternative to traditional fuels like coal and naphtha.

The joint venture with TEC will erect an LNG terminal at Trombay, near Mumbai, with an initial handling capacity of 1.2 tonnes per annum which will subsequently be upgraded to two million tonnes, sources said.

Total will be an equal equity partner in this project with 50 per cent holding. The project cost is estimated at 350 million dollars.

TEC, which is the power utility in and around Mumbai will absorb a part of the LNG imported at this terminal. Commercial operations at the terminal is expected to begin in three to four years from now.

Total is on the verge of finalising the location for another 2.5 million LNG terminal in south India.

"The company has signed a memorandum of understanding (MoU) with HPCL for developing an LNG terminal in south India. The terminal will have a capacity of 2.5 million tonnes per year which will be raised later on," sources said.

This is again a 50:50 joint venture with a Total cost of 500 million dollars. The joint venture will also build a LNG-fired power plant connected with the terminal which will cost another 500 million dollars more, raising the Total investment to one billion dollars.

The location of the terminal is currently being finalised, sources said. The two locations shortlisted are Vizag and Kakinada, both in Andhra Pradesh.

"Port facilities are the determining aspect in the selection process for the location," sources added.

Total which has production blocks in the Middle East, the North Sea, the Far East, Latin America and Africa, will source LNG for India from Qatar, Abu Dhabi, Oman and Yemen. With around five billion barrels oil equivalent (BOE) of reserves around the globe, Total is one of the biggest names in LNG.

"The companies Adgas and Qatargas will be the suppliers from Abu Dhabi and Qatar respectively," sources said.

"The company will take up joint ventures with domestic upstream majors Oil and Natural Gas (ONGC) and Oil India Ltd (OIL). But all the plans depend upon the new exploration policy which is expected towards the end of the month," company sources said.

Total also has plans for India in speciality products like liquified petroleum gas (LPG) and lubricants.

The company is considering a LPG terminal at Vizag in Andhra Pradesh, another joint venture with HPCL. Feasibility studies are on, sources said.

Total lubricants, a joint venture of the company with the Delhi-based Anand group has been in the Indian market for about two years now, marketing lube brands like `Rubia', `Quartz' and `HBS3'.

Total holds the majority stake in the 51:49 joint venture.

Total is also keen about exploration and production in India and a special technical team has visited the country and identified some potential blocks, sources said.

Total had a long-standing technical cooperation with ONGC from 1978 to 1992 during which it was involved in the development of Bombay High.

However, Total has no immediate plans for the refinery sector in India, sources said.