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| GSPC builds on LNG trading biz |
| BS Reporter / Ahmedabad Sep 29, 2009, 00:47 IST |
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Gujarat State Petroleum Corporation Ltd (GSPC) is planning to import one liquefied natural gas (LNG) cargo every month as part of its strategy to enter into the LNG trading business.
In fact, GSPC imported its second LNG cargo on Monday from Qatargas on a spot basis, making it the first Indian non-terminal owner to have independently purchased such cargoes.
Earlier in June, GSPC had purchased its first LNG cargo delivered by Australia’s North West Shelf (NWS) through a bidding process at a very competitive price, according to company sources.
“This is another step by GSPC towards building its LNG trading business and achieving its ambition to develop its own LNG terminal,” GSPC Managing Director D J Pandian said.
Gas from the cargo was received at Petronet LNG’s R-LNG receiving & re-gassification terminal at Dahej and will be sold to meet the burgeoning demand of gas from various industrial & power sector customers across Gujarat. GSPC will utilise its 1,420-km pipeline to supply gas to various parts of the state.
Reliance, GSPC and NTPC are the main consumers of spot LNG in the country. India imports about four-five spot cargoes every month at the two operating terminals in Gujarat.
While the Hazira LNG terminal is a joint venture project of Shell and Total, Dahej is operated by Petronet LNG.
“There is a huge demand for gas in Gujarat. We may still buy one cargo on spot basis from Dahej or Hazira terminals every month to cater to the industry demand,” a senior official of GSPC said on condition of anonymity.
GSPC has tied up with the Adani group for setting up an LNG terminal at Mundra with an initial capacity of 6.5 million metric tonnes per annum (mmtpa) and it plans to scale up the capacity to 20 mmtpa in a phased manner.
The first phase will involve an investment of about Rs 3,500 crore, which includes setting up of two tanks and a jetty.
GSPC holds a 51 per cent stake in the LNG terminal project, while the Adani Group will hold close to 25 per cent. The terminal will be commissioned by 2012-2013.
Meanwhile, GSPC is also aiming to tap the capital markets by coming up with an initial public offer in the range of $1-1.5 billion before the end of the financial year.
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