NTPC requires up to approximately 320 million cubic feet per day of gas for its plants at locations including Kawas, Gandhar, Dadri and Faridabad as domestic supplies fail to meet India's burgeoning demand.
A three-year contract is understood to be under discussion with Petronas.
"Our talks are at a fairly advanced stage. However, we haven't quite reached the agreement stage as yet," an NTPC official told reporters.
Petronas