The newspaper quoted 'senior Indian government officials,' which said the companies have held initial discussions and were now working towards signing a formal agreement by the end of this year.

But Petronet chief executive P Dasguta declined to comment on the development.

The government sources told the Economic Times that Petronet LNG had reached an in-principle agreement on the pricing and payment. Even though the exact pricing details are yet to be determined, it is understood it will comprise a variable and fixed component, the Economic Times said.

In September, India’s petroleum secretary, SC Tripathi, said Shell - Chevron’s partner in Gorgon – had offered to sell Australian LNG to India to address its growing energy needs.

Late last month, Chevron sealed Gorgon’s first cornerstone deal, after signing a heads of agreement with Tokyo Gas to export 1.2 million tonnes per annum into Japan.

Earlier this year, the Gorgon joint-venture partners signed a framework agreement to align their equity interests and to pave the way for the combined development of Gorgon and nearby gas fields as one world-scale project. In addition, individual joint-venture participants are able to secure markets for their own share of Gorgon LNG.