Reliance Industries,IOC,ONGC,GAIL in bidders list to buy stake in Gujarat terminal

Move comes in wake of exit of Essar group,the third partner with a 25 pc stake in venture.

Reliance Industries-BP combine,Indian Oil Corp (IOC),Oil & Natural Gas Corp (ONGC) and GAIL are among the 8 firms in race to buy 25 per cent stake in a LNG import terminal being planned at Mundra in Gujarat. Reliance-BP have bid for the 25 per cent stake through their equal joint venture India Gas Solutions.

Gujarat State Petroleum Corp (GSPC) had invited expression of interest for the 25 per cent stake in the 5 million tonnes a year liquefied natural gas (LNG) terminal.

Check Live Stocks

Besides Reliance-BP,other firms expressing interest include state-owned ONGC,GAIL and IOC,Petronet LNG Ltd and Torrent Energy,industry sources said. Japan’s Mitsui & Co and Toyota Tsusho Corporation too are in fray.

Story continues below this ad

GSPC,a Gujarat company,would hold 50 per cent stake in the Rs 5,200 crore project while Adani Group would take 25 per cent. 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 per cent 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. GSPC has awarded the front-end engineering and design (FEED) contract to Tractebel of Belgium. Mundra will be the third LNG import terminal in Gujarat,after Petronet’ 10 million tonnes per annum capacity facility at Dahej and Shell’s 3.6 million tonnes Hazira LNG terminal.

* Mutual Funds: Top Profit-making Schemes

The terminal is expected to go on stream by first quarter of 2016,sources said. Gujarat is mulling another LNG terminal at Pipavav of 2.5 to 5 million tonnes capacity.