Reliance Industries-BP combine, Indian Oil Corp (IOC), Oil and Natural Gas Corp (ONGC) and GAIL are among the eight firms in race to buy 25% stake in an LNG import terminal being planned at Mundra in Gujarat.
Reliance-BP have bid for the 25% stake through their equal joint venture India Gas Solutions. Gujarat State Petroleum Corp (GSPC) had invited expression of interest for the 25% stake in the 5 million tonnes a year liquefied natural gas (LNG) terminal.
Besides Reliance-BP, other firms expressing interest include state-owned ONGC, GAIL and IOC, Petronet LNG and Torrent Energy, industry sources said. Japan’s Mitsui & Co and Toyota Tsusho Corporation too are in fray.
GSPC, a Gujarat company, would hold 50% stake in the R5,200-crore project while Adani Group would take 25%.The project is to be financed in a debt to equity ratio of 70:30. The terminal capacity would be expandable upto 10 million tonnes per annum. Sources said most of the companies that have expressed interest, want to import their own liquid gas (LNG) and sell it to consumers in the vastly energy deficit country.
GSPC has been scouting for a strategic investor for its LNG project, after Essar group — the third partner with a 25% stake in the venture — exited from the terminal. The LNG terminal will have two LNG storage tanks. It will have LNG receiving, re-gasification and gas evacuation facilities.