BSES, the power utility, is eyeing a stake in Petronet LNG, the consortium of four oil companies set up by the Union government to import gas into the country.
R V Shahi, BSES chairman and managing director, said: "We are holding preliminary discussions to pick up a stake and are critically evaluating the opportunity. No final decision has been made as yet."
It makes sense for BSES to pick up a stake in Petronet LNG as there is synergy between gas and power projects. Power production is a key area for BSES, while liquefied natural gas (LNG) is increasingly emerging as the preferred fuel for power projects in the country.
More From This Section
Besides, BSES stands to gain further as Petronet LNG is planning to set up an LNG terminal with a capacity of five million tonne per annum at Dahej in Gujarat and another one at Kochi in Kerala with a capacity of 2.5 million tonne.
The company already has a 165 mw naphtha fired power plant at Kochi. Naphtha-based power units can be converted into gas-based ones. BSES also plans to set up a power plant at Dahej.
Petronet LNG is a joint venture between Indian Oil Corporation, Oil & Natural Gas Corporation, Gas Authority of India and Bharat Petroleum Corporation.