1. Adani group offers 49 per cent stake in Dhamra LNG project to IOC, GAIL

Adani group offers 49 per cent stake in Dhamra LNG project to IOC, GAIL

Adani Group has offered 49 per cent stake in its Rs 5,000-crore Dhamra LNG project in Odisha to state-run gas utility GAIL India and refiner Indian Oil Corporation (IOC).

By: | New Delhi | Published: March 27, 2016 10:16 AM
Equity in Adani terminal follows GAIL in March last year dropping plans to set up a floating LNG import terminal at Paradip. IOC too had in 2012 signed an MoU with Dhamra LNG Port Corp Ltd (DPCL) to develop a LNG terminal at the port. (Reuters) Equity in Adani terminal follows GAIL in March last year dropping plans to set up a floating LNG import terminal at Paradip.(Reuters)

Adani Group has offered 49 per cent stake in its Rs 5,000-crore Dhamra LNG project in Odisha to state-run gas utility GAIL India and refiner Indian Oil Corporation (IOC).

Adani has formally written to the two state-owned firms offering them 49 per cent stake in the 5 million tonnes a year liquefied natural gas (LNG) import terminal planned at Dhamra by 2018-19, sources privy to the development said.

IOC had last year signed up to use 60 per cent of the terminal capacity for importing gas for its refineries at Haldia in West Bengal and Paradip in Odisha.

GAIL too had signed up for 1.5 million tonnes of the terminal’s regassification capacity.

The two firms have agreed to take equity in the project but they are yet to decide on the proportion in which the 49 per cent stake would be split, sources said.

GAIL and IOC were initially bargaining for 50 per cent stake in the project but Adani wanted to retaining controlling 51 per cent interest.

Equity in Adani terminal follows GAIL in March last year dropping plans to set up a floating LNG import terminal at Paradip. IOC too had in 2012 signed an MoU with Dhamra LNG Port Corp Ltd (DPCL) to develop a LNG terminal at the port.

After shelving their respective plans, the firms in May last year signed a memorandum of understanding (MoU) with Dhamra LNG Terminal Pvt Ltd, a firm owned by Adani Enterprises, for 5 million tonnes a year LNG import terminal.

Dhamra will be the sixth LNG project announced on the east coast. While GAIL has dropped plans of a four million tonnes project at Paradip, Petronet LNG Ltd — a firm in which GAIL and IOC are promoters — has cold-storage plans to set up a five million tonnes a year LNG import facility at Gangavaram in Andhra Pradesh.

GAIL, along with GdF and Shell, has proposed a 3.5 million tonnes floating LNG terminal at Kakinada while IOC is building a five million tonnes facility at Ennore in Tamil Nadu.

Real estate player Hiranandani Group plans to set up a Rs 2,400 crore, 4 million tonnes floating LNG import terminal off Haldia in West Bengal.

With GAIL, which owns and operates bulk of the nation’s cross country pipelines, and IOC, whose refineries are a big user of gas, joining Dhamra, the fate of LNG terminals in Andhra Pradesh is uncertain. Dhamra can meet all of the demand in Odisha and Andhra Pradesh.

Dhamra port in Bhadrak district of Odisha is an all-weather deep water port, sources said.

GAIL had in October 2013 signed an MoU with the Paradip Port Trust for setting up of the LNG import terminal. While the port was to invest Rs 650 crore on breakwater and dredging, GAIL was to invest Rs 2,458 crore for the 4 million tonnes terminal which can be expanded to 10 million tonnes. The plan was, however, dropped in March last year.

  1. Nitin Varia
    Mar 28, 2016 at 1:41 am
    INDIAN OIL CORPORATION IS "" VIRAT KOHLI"" OF FY 15/16 THE SOARIMG PRICE BEFORE EXPIRY WILL VINDICATE IT. ###################### Open interest at expiry was 85.65 lacs. And as of on 23/3 it became 51.20 lacs. One Prinl is that when price down and open interest down MARKET IS STRENGTHENING. Ride till open interest reaches 85 lacs is a joy and safest ride with windfall. ###################### INDIAN REFINERS NEVER HAD SUCH A GOLDEN YEAR OF PROFITS AS 15/16 IN ITS HISTORY.Petroleum Minister scouting Iran supplies during visit 5/4 and 6/4. On 90 days credit. And PM Modiji's securing crude supplies from Saudi during visit on 10/4/16 As reported by Bloomberg Reliance is lucky this year resulting from falling crude. So is Mody Government. 1. HISTORICALLY HIGHEST PROFIT IN 15/16 due to falling crude during the period. 2. Highest Inventory Gain in 4th QUARTER of 15/16. 3. Highest refining margin the best among peers in India. No.1. Beating Reliance. IOC GRM will top 14$ whereas Reliance shall be at $ 11.4. Plastic Products based on Naphta so to register highest HISTORICAL profits as reported by FITCH. Naptha have been lowest since 15 years during the year. 5. RBI to reduce interest by 50/basis points as it augurs well with IOC being large borrower. 6. RUPEE strengthening due to good budjet so best foreign exchange gains. As IOC gets oil on 600 days credit. Rupee appreciated from 69 to 66 giving wind fall PROFIT to IOC. 7. Budget 16/17 focuses on Rural growth and IOC have maximum presence in this area which translates into continued increase in marketing margins over and above refining. 8. IOC was on buying spree of crude installations world wide and especially Russia when crude was below 30. So got a bargain deals that translates into best business decision . 9. Pradip Refinery the best in India to add to profitability as it can process any kind of crude. 10. IOC historically announces bonus every five years. And now it is to be announced during April 2016 when the annual results announced or may be after 5 state election results. 11. Bear cartel in bear SQUEEZE. The punters maniting open interest after market closes. 12. Normally open interest in IOC 85 lacs. But as of today it is 51 lacs. Meaning it is vergin ride till you cross 85 lacs without risk. 13. There can be no better stock than IOC. HPCL is over valued and so is BPCL. 14. Exports of Naptha at most lucrative prices adding to profits. Reported on Bloomberg. 15. Direct Transfer of subsidy halts leakage that is net gain. Marketing Margins to OMC highest in its history. The beneficiary of Adhar DBT to IOC is maximum as IOC were providing 60% of subsidized LPG Kerosene out of the three OMC. 16. Highest Advance tax paid in its history for the fourth quarter. 17. Re- Rating of OMC done. 18. Supply side being strengthened by visit of our PM to Saudia. On 27/3/16 IOC to Continue upward trajectory.Enjoy the joy ride care free.
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