Indian Oil and Gail to get stake in Adani LNG terminal

MUMBAI (Reuters) - India's biggest refiner Indian Oil Corp Ltd and gas transporter Gail (India) Ltd are set to take a stake in a liquefied natural gas (LNG) terminal being built in Odisha.

The two companies will sign an agreement on Wednesday with coal trader Adani Enterprises Ltd , which will be building the five million tonne LNG regasification terminal, Indian Oil said in a statement on Tuesday.

The statement did not specify what stake Indian Oil and Gail would be taking though company officials have previously indicated that they might buy 49 percent of the terminal.

Factories and vehicles are expected to need more and more natural gas in coming years and Indian Oil has been aggressively booking capacities in LNG terminals across the country.

 

The company, which is setting up its own 5 million tonne terminal in the east coast, wants its gas trading business to contribute 15 percent of revenues by 2021.

(Reporting by Promit Mukherjee; editing by David Clarke)