IndianOil - Adani Energy JV may pick 50 % shares in LNG terminal
New Delhi   18-Dec-2008
A joint venture of state refiner IndianOil and Adani Energy is likely to take 50 per cent stake in a Rs 4,000 crore liquefied natural gas (LNG) import terminal planned by Gujarat State Petroleum Corporation (GSPC) at Mundra in Gujarat. IndianOil and Adani Energy, earlier this month signed an agreement to set up a 50:50 joint venture company for gas distribution. The joint venture company, which is likely to take shape by January, will set up city gas distribution projects in Uttar Pradesh, Haryana, Rajasthan, Punjab and Madhya Pradesh for supply of compressed natural gas (CNG) to automobiles and piped natural gas for domestic and industrial use besides marketing LNG. GSPC will hold the remaining 50 per cent stake in the terminal that is planned for commissioning in 2012, a company source said. The company has already awarded Front End Engineering and Design (FEED) contract for the terminal to the tractable of Belgium. The FEED is likely to be ready by March-end or early April, based on which the investment decision will be made, they said. Mundra would be the third LNG terminal in Gujarat. 'Petronet’ LNG ltd already operates a 6.5 million tonnes a year LNG import facility at Dahej while a joint venture of Royal Dutch/Shell and Total of France own a 2.5 million tonnes capacity terminal at Hazira. Sources said, ‘the Mundra terminal is being planned with an ultimate capacity of 20 million tonne's, depending on the demand. The capacity may be ramped up to 6.5 million tonnes with minor bottlenecking but future additions would be made if there were demand for imported LNG.’