Government has asked world's number three oil and gas group Royal Dutch Shell to furnish more details of its plans to set up about 2000 petrol stations in the country before it can be granted licence to sell petrol and diesel.

"The company has been asked to furnish details of the petrol stations it plans to set up in remote and low service areas," highly placed government sources said in New Delhi.

As per norms, 11.6 per cent of the total retail strength has to be put up in remote and low service areas.

Shell, in its application to petroleum ministry for a retail licence, has not provided state-wise details of the retail outlets it plans to set up in remote and low service areas, sources said.

The company, which has also bid for acquiring government stake in state oil refiner Hindustan Petroleum Corp, has sought licence to sell petrol and diesel in lieu of investment it would make in the LNG import and regassification terminal at Hazira in Gujarat.

Currently, petro marketing rights are contingent upon a company investing or proposing to invest Rs 2000 crore (Rs 20 billion) in oil and gas exploration, refining, pipeline or terminals.

Sources said Shell had in its application, made to petroleum ministry earlier this month, indicated that it has till now invested Rs 1000 crore (Rs 10 billion) in the 5 million tonnes per annum capacity LNG import terminal in Gujarat.

Shell, sources said, has indicated it would "as far as possible" source petroleum products from domestic refiners, failing which it had the option to import petrol and diesel for retailing in India.

Petroleum ministry had earlier agreed to Shell's request for being freely allowed to import petrol, diesel and jet fuel for retailing in India. Necessary changes have to made in the Export-Import policy, for which the ministry had approached the ministry of commerce and industry.

At present, petroleum product import is allowed only through government's canalising agency IOC. Though crude oil imports had been de-canalised last year, petro product imports remained under canalised category as imported petrol and diesel could be sold at a cheaper rate under the given duty structure.

"Duty structure too would be changed accordingly," sources said.

Shell, which operates more than 46,000 petrol stations and has interests in about 50 refineries worldwide, may import petrol and diesel at its Hazira port in Gujarat from its 430,000 barrels per day Bukom refinery in Singapore. Some 90 per cent of Bukom's product are exported in the region and beyond.

Sources said petroleum ministry, which is doubling up as oil sector regulator till the passage of the Petroleum Regulatory Board Bill by Parliament, would also verify the investment made by Shell in India before granting it the licence.

After deregulation of the oil sector last year, Government had authorised Reliance Industries to set up 5849 retail outlets, Essar Oil 1700, state-owned Oil and Natural Gas Corporation 600 and Numaligarh Refinery Ltd another 310 outlets.

Shell in its application stated that its five million tonnes per annum capacity LNG terminal at Hazira was scheduled for limited operation (2.5-2.6 million tonnes) in 2004 and full-scale operation in December 2006-07.

About 25 per cent of the construction activity has been completed at the project site. Contracts for construction of LNG regassification and storage tanks have been placed.

LNG would initially be sourced from one of Shell's equity projects in Asia-Pacific region and a long-term dedicated supply project, most probably in the Middle-East, would be put up at a later stage, sources said.

Orders for four 135,000 mm LNG carriers have already been placed by Shell with Mitsui Heavy Industries of Japan and Daewoo of Korea.

Shell has signed a pact with Gujarat government for developing a port at Hazira. As per the concession agreement Shell would operate the port on BOOT basis for a 35-year period.