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IOC, GAIL to sign pact to take 49% stake in Adani project

IOC will take 38 per cent stake and GAIL will pick 11 per cent in the proposed 5-million tonne a year LNG import terminal at Dhamra by FY19

Press Trust of India  |  New Delhi 

IOCL

State-owned refiner Indian Oil Corporation (IOC) and will sign a pact on Wednesday to take 49 per cent stake in Group's Rs 5,000-crore Dhamra project in While will take 38 per cent, GAIL will pick 11 per cent stake in the proposed 5-million tonne a year liquefied natural gas (LNG) import terminal at Dhamra by financial year 2018-19. Petroleum Terminal will hold 49 per cent in Dhamra Terminal — the firm setting up the plant. The remaining 2 per cent interest will be held by financial institutions. Sources said a formal agreement signing ceremony is planned on Wednesday where Oil Minister Dharmendra Pradhan, who also hails from Odisha, will also be present. had last year signed up to use 60 per cent of the terminal capacity for importing gas for its refineries at Haldia in and Paradip in GAIL too had signed up for 1.5 million tonnes of the terminal's regassification capacity. GAIL and were initially bargaining for 50 per cent stake in the project, but wanted to retain controlling interest. Equity in the terminal follows GAIL dropping plans in March last year to set up a floating import terminal at Paradip. too had in 2012 signed an memorandum of understanding (MoU) with Port Corp (DPCL) to develop an terminal at the port. After shelving their respective plans, the firms in May last year signed a pact with Dhamra Terminal, a firm owned by Enterprises. Dhamra will be the sixth project announced on the east coast. While GAIL has dropped plans of a 4-mt project at Paradip, Petronet LNG, a firm in which GAIL and are promoters, has shelved plans to set up a 5-mt a year import facility at Gangavaram in Andhra Pradesh. GAIL, along with GdF and Shell, has proposed a 3.5-mt floating terminal at Kakinada while is building a 5-mt facility at Ennore in Tamil Nadu. Real estate player Hiranandani Group is looking to set up a Rs 2,400-crore, 4-mt floating import terminal off Haldia in 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 terminals in Andhra Pradesh is uncertain.

Dhamra can meet all of the demand in and Andhra Pradesh. Dhamra port in Bhadrak district of is an all- weather deep water port, sources said. GAIL in October 2013 had signed an MoU with the for setting up of the import terminal. While the port was to invest Rs 650 crore in breakwater and dredging, GAIL was to invest Rs 2,458 crore for the 4-mt terminal which can be expanded to 10 mt. The plan was, however, dropped in March last year.

First Published: Tue, September 20 2016. 17:23 IST
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