Talks are also on with Essar for the remaining equity but no agreement has been reached.
"Essar is looking at setting up its own terminal at Pipavav. But we continue to talk to them," he added. For the remaining equity, state-run Hindustan Petroleum Corp has also shown interest.
GSPC's move is being considered bold given the fact that Petronet LNG, India's largest liquefied natural gas importer, is doubling capacity of its Dahej terminal, also in Gujarat, to 10 million tonnes by 2010 and Shell-Total's Hazira terminal, also in the same state, will see its capacity being raised from 2.5 million tonnes to 3.6 million tonnes a year in the next few months.
India, Asia's third-largest oil consumer, is encouraging use of natural gas to control its oil import bill and rein in inflation but there is not enough supply to satisfy rising demand.
Gas demand in India, at around 179 million standard cubic meters a day (mmscmd), is far short of the supply of about 95 mmscmd (including LNG).
Supplies are expected to double by 2010 when KG-D6 reaches peak of 80 mmscmd and flow of additional LNG.
However, by them demand projections made by Petroleum Ministry see the need for about 230 mmscmd of gas.