Petronet LNG, which was earlier planning to float a separate joint venture shipping company for the purpose, would require two ships for its five million tonnes Dahej LNG terminal in Gujarat and one ship for the 2.5 million tonne LNG terminal project at Kochi in Kerala, sources said.

Multinational companies like Mitsui, Mitsubishi, Samsung and NKK have already evinced interest to charter ships for Petronet LNG, the sources said adding this would entail an expenditure to the tune of $500 million to Petronet.

The French multinational is expected to submit its report to Petronet LNG in two months period and shipping of the fuel would start from June 2003, the sources said.

Petronet LNG would select the shipping company based onthe international competitive bidding route for which tenders would be invited by end of the current fiscal. Petronet LNG had already entered into a long-term supply purchase agreement with multinational Rasgas-Mobil for importing LNG which would be used as feedstocks to various power and fertiliser plants, the sources said.

French multinational Gaz De France is the strategic partner for Petronet LNG which has temporarily parked $55 million as equity in the holding company which would later be transferred to Dahej and Kochi terminals, the sources said.

Financial institution like industrial development Bank of India and multilateral lending agencies likes Asian Development Bank and Overseas Economic Cooperation Fund of Japan have expressed interest in picking up some stake in Petronet LNG.