The MetGas project, which has been in the news following a strong opposition from locals, is yet to receive various approvals from the Centre. The construction work is yet to begin by Enron's marketing and pipeline affiliate, Metropolis Gas Company Pvt Ltd, which would import and regassify liquified natural gas into the Dabhol terminal.

Enron spokesman Jimmy Mogal said, "We have made an internal reorganisation of some personnel who had been working on developing the MetGas project. A small core team will continue to develop this project and explore the opportunities in India's gas sector. The impacted employees are being redeployed both within and outside the company." According to Enron India, MetGas has already received the necessary approvals for carrying out the procedure to seek objections from the villagers and the parties concerned. The company had completed this process around July last year after holding Samaj Yatras. During these yatras, the company informed the villagers about the project and sought objections and suggestions.

Mr Mogal said that the company had to seek an approval as the pipeline which would spread over 400 km between Dabhol and Panvel, would pass from the land owned by nearly 22,000 families.

According to the company, it is yet to receive permissions for the payment of compensation and actual laying of pipelines from the Union ministry of petroleum. The company added that it was in the process of seeking these approvals.

Mr Mogal said, "We are continuing to develop the project and are currently focused on obtaining permits and clearances from the state and central governments and continuing works on gas supply and gas marketing efforts."

The MetGas project envisages laying of pipeline to transport natural gas from Dabhol to customers north of Dabhol. Gas supply agreements are being concluded with industrial and commercial users in Maharashta.

Enron has 20-year contracts for the supply of 2.1 million tones per year of LNG with Oman LNG (1.6 million tonnes) and Abu Dhabi Gas Liquefaction Company (ADGAS- 48,000 tonnes per year). LNG deliveries are expected to commence fourth quarter of 2001.

Enron has already signed a memorandum of understanding with Indian Oil Corporation for the development of cooperation in the fields of energy and communications. Enron has also offered an equity stake to IOC in the MetGas pipeline project. The pipeline would source LNG and distribute gas to Maharashtra, Karnataka, Gujarat and Andhra Pradesh. The two would also collaborate in a series of oil and gas projects with Dabhol as the nodal point.