IOC to acquire up to 50% in Mundra LNG terminal

Posted by Daily Shipping Times on 08-08-2017        Tweet

NEW DELHI: The Indian Oil board has given its in-principle approval for acquiring up to 50 per cent equity in GSPL LNG Ltd, which is setting up a 5-MMTPA LNG terminal at Mundra Port in Gujarat.

GSPL LNG Ltd is a joint venture of Gujarat State Petroleum Corporation (GSPC) and Adani Enterprises Ltd (AEL). According to officials in Indian Oil, this will be by way of fresh equity that will be issued by the joint venture, as the estimated cost of the project is approximately `5,040 crore.

Indian Oil is doing preliminary evaluation at present.

The LNG terminal, to be commissioned in the fourth quarter of 2017-2018, will have receipt, storage and re-gassification facilities and will be connected to Gujarat State Petronet Ltd’s (GSPL) existing pipelines network at Anjaar (Gujarat).

Indian Oil Chairman Sanjiv Singh said, “We already have investments across the gas value chain, from LNG import terminals to city gas distribution networks, the major among them being a 5-MMTPA LNG import terminal at Kamarajar Port near Chennai, scheduled for commissioning in 2018-19.”

The board also approved expansion of Indian Oil’s Gujarat refinery from 13.7 million tonnes per annum to 18 MMTPA. An official statement said the project expansion is at an estimated cost of `15,034 crore.