GSPC in talks with Essar, Adani for LNG terminal

The Gujarat State Petroleum Corporation (GSPC) is in talks with Adani and Essar groups for its upcoming 5-10 MTPA (million tonne per annum) LNG terminal in Gujarat.

Essar group's Prashant Ruia and Adani's Gautam Adani along with representatives of a leading corporate held a meeting with GSPC officials on Tuesday in this regard.

"It was a preliminary meeting with some of the leading industry players," said a GSPC official on condition of anonymity. However, he did not rule out the possibility of jointly setting up the terminal with a private player.

At present, India has only three LNG terminals "" Petronet and Shell terminals in Gujarat, and Dabhol terminal of Ratnagiri Power in Maharashtra.

Besides, there are two more LNG terminals coming up in Gujarat. The Adani group had filed an IEM (industrial entrepreneurial memorandum) with the Department of Industrial Policy and Promotion (DIPP) in September 2007 for building an LNG terminal in the state.

Both GSPC and the Adani group had signed MoUs during the Vibrant Gujarat Global Investors' Summit for setting up LNG terminals in the state. GSPC had signed an agreement to set up a Rs 2,000-crore terminal in Pipavav.

"There are some more companies which have evinced interest in GSPC's Pipavav terminal as well as our terminal in Mundra," said a senior government official. GSPC is looking for two LNG terminals in Gujarat. Earlier this year, the state-owned company had signed an MoU with Russia's Suntera to set up an LNG terminal.

As and when both the LNG terminals come up, it will substantially augment the total LNG import capacity. The total LNG capacity will increase to over 20 MTPA capacity. The state already has two LNG terminals with a cumulative capacity of 7.5 MTPA.