Petronet LNG Limited is looking for a strategic foreign partner for implementing its Rs 4,500-crore Gangavaram LNG project in Andhra Pradesh.
“We are looking for more supplies to meet the country’s demand. Hence, we are planning to give some equity stake in the upcoming Gangavaram LNG project to a foreign partner who can bring more LNG supplies for Petronet,” AK Balyan, managing director and chief executive officer, told mediapersons here on Tuesday.
The company, at present, has long-term agreements with foreign companies for supply of LNG for the existing Dahej and Kochi LNG terminals.
Petronet has proposed a 5-million tonne capacity LNG terminal at Gangavaram port in Visakhapatnam district in the first phase. Later, it would be upgraded to 10 million tonne. The first phase would be ready by 2016 and the project would involve an investment of Rs 4,500 crore, he said.
The company would hold 70 per cent equity in the project while the remaining would be distributed among Gangavaram port, strategic foreign partner and major natural gas buyer in this region, he added. Of the total Rs 4,500-crore investment, about 70 per cent would be debt component.
To bring LNG early to Gangavaram, Petronet is studying the possibilities of setting up a floating LNG storage and regasification unit at the port. “If we can set up a floating unit, LNG imports will start by 2014 instead of 2016 by land-based unit,” he said.
Petronet, which operates a 10-million tonne capacity LNG terminal at Dahej in Gujarat, is enhancing its capacity by another 5 million tonne with an investment of Rs 3,000 crore. Balyan said the expansion would be completed by 2015. The 5-million tonne capacity LNG terminal at Kochi with an outlay of Rs 4,200 crore would commence operations in 4-5 months, he said.