RIL-BP leads race for picking up 25% stake in Mundra Terminal

Reliance Industries-BP combine isleading the race for picking up 25 per cent stake in Gujaratgovernment's planned LNG import terminal at Mundra, officialssaid today.

India Gas Solutions Pvt Ltd - the equal joint venturebetween the Mukesh Ambani-led firm and Europe's second largestoil firm - is among the three companies shortlisted by Gujarat

government for giving out 25 percent stake in the Mundraterminal.

State-owned Indian Oil Corp (IOC) and Oil and Natural GasCorp (ONGC) are the other two firms shortlisted, officialssaid on the sidelines of 8th Asia Gas Partnership Summit in New Delhi.

Initially 8 firms including state gas utility GAIL Indiahad expressed interest to buy 25 per cent stake in the 5million tonnes a year liquefied natural gas (LNG) terminalbeing planned by the state government owned Gujarat StatePetroleum Corp (GSPC).

RIL-BP leads race for picking up 25% stake in Mundra Terminal

India Gas Solutions Pvt Ltd - the equal joint venture
between the Mukesh Ambani-led firm and Europe's second largest
oil firm - is among the three companies shortlisted by Gujarat
government

The official said GSPC is likely to finalise the partnerin next few days.

"Essentially, GSPC is looking at a partner which can bringin LNG, can consume the imported liquid gas as well and marketthe fuel," he said adding RIL-BP fits the bill perfectly.

BP is a producer and trader of LNG while RIL's twinrefineries at Jamnagar in Gujarat as well as its largepetrochemical plants are huge consumers of gas. The duo arealso marketers of gas in the country.IOC and ONGC, on the other hand, are only consumers of thefuel.

Experts wonder why GAIL was left out because it unlike RILhas experience of operating LNG terminal and is owner ofmajority of the nation's gas pipeline network. GAIL, which has

aggressively tied up LNG supplies from US to Russia, is thebiggest marketer of gas in the country.Besides the three, other firms which had expressedinterest included Petronet LNG Ltd, Torrent Energy, Japan'sMitsui & Co and Toyota Tsusho, the official said.

GSPC would hold 50 per cent stake in the Rs 5,200 croreproject while Adani Group would take 25 per cent.The project is to be financed in a debt to equity ratio of70:30.The terminal capacity would be expandable upto 10 milliontonnes per annum.Sources said most of the companies that have expressedinterest, want to import their own liquid gas (LNG) and sellit to consumers in the vastly energy deficit country.

PTI

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Updated Date: Dec 21, 2014 00:33:03 IST

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