Eight apply for 25% stake in GSPC & Adani's Mundra LNG terminal

Eight entities have shown interest in acquiring a 25 per cent stake in Adani Enterprises and Gujarat State Petronet Corporation's liquefied natural gas (LNG) terminal in Gujarat.

A dcision is likely in four months. Among those which have filed an Expression of Interest (EoI) are India Gas Solutions, the joint venture (JV) of Reliance Industries and BP; Oil and Natural Gas Corporation, GAIL India, Petronet-LNG, Indian Oil Corporation, Torrent Energy, Japan's Mitsui & Co and Toyota Tsusho Corporation.

The terminal is being set up under a JV of GSPC and Adani Enterprises Ltd (AEL) at Mundra in Gujarat’s Kutch district. It has been scouting for a strategic investor for 25 per cent stake.

GAS RUSH

• Eight players have given EOIs for a 25% stake
• GSPC and Adani want players to bring in terminal handling experience and avenues to sourcing of gas
• Mundra LNG terminal will be the third one in Gujarat after Dahej and Hazira
• Cost of the project around Rs 5,200 crore

“We are looking for partners who can, in addition to money, bring experience in terms of booking capacity, terminal handling and sourcing of natural gas," said a senior executive.

The Mundra terminal will be the third in Gujarat. The state has LNG terminals at Hazira and Dahej, with a total capacity of 13 million tonnes (mt) annually. GSPC formed GSPC LNG Ltd, a special purpose vehicle, in 2007 to set up the LNG terminal with AEL. GSPC’s website says the estimated project cost is Rs 5,200 crore, to be financed in a debt to equity ratio of 70:30.  

“We are looking at a deadline of 2014 and with the EoI received, the plan is to progress on this front as soon as possible,” the official added. Expected to be commissioned in 2015-16, the LNG terminal will be designed to have a berth for receiving LNG tankers, two LNG storage tanks and facilities for regasification and evacuation. With an initial capacity of five mt annually, this is to be later expanded to 10 mt and finally to 20 mt.