New Delhi, March 4 :     The controversy over the marketing rights for imported gas has been settled in favour of Gas Authority of India Ltd (Gail). A formal announcement has not been made till now but the ministry of petroleum and natural gas has taken an in-principle decision that the liquefied natural gas (LNG) imported by Petronet LNG Ltd should be marketed by Gail. Indian Oil Corporation (IOC) had staked its claim to market at least a part of the imported gas. Besides, Petronet LNG was keen to have its own marketing network. In an effort to resolve all future conflict of interests, the government has now defined clearly the role of each player in the gas industry. Petronet LNG?s role will be confined to the import of LNG and its degasification. Gail will continue to be the marketing company not only for the domestically produced gas but also for the imports. It will have to expand its network to south India, a region where many LNG terminals have been planned. Petronet LNG has always claimed that it would be the country?s most competitive gas supplier by virtue of the HBJ gas pipeline network and associated facilities owned and operated by Gail. However, it does not explain how it can consider GAIL?s pipeline network as its own. The Gail management outsmarted Petronet by seeking the ministry?s permission to set up its own terminals and enter the LNG business However, it does not plan to compete with Petronet LNG, of which it is a promoter. Gail wants to set up terminals on the east coast, a region in which Petronet is not interested in the immediate future. The company has argued that the falling domestic gas production would leave its pipeline infrastructure under-utilised if supplies were not supplemented with imports. Alternatively, it could be entrusted with the marketing of gas imported by Petronet LNG. Petronet LNG has been facing the threat of destabilisation not only from multinationals licensed to set up terminals on the west coast but also from National Thermal Power Corporation (NTPC). Once Petronet LNG?s terminal goes on stream, there will be no scope for other terminals on the west coast. NTPC?s role in the affair has been largely dubious and is reported to have had the sanction of power minister Rangarajan Kumaramangalam, a trade union leader. The proposed contract with Qatar for 20 year supply of LNG could turn out to be the largest ever struck by the country. Therefore, there is an impression among a few politicians that hefty kickbacks were paid to secure the deal. The government, or the Petronet management, have done little to dispel these doubts. Ras Gas, a joint venture between Qatar and Mobil, was selected as the preferred supplier on the basis of an international tender. Even before the tender, there was an MoU signed between the two governments on LNG supply.