Petronet may acquire up to 10% stake in OPaL

Liquefied gas importer Petronet LNG (PLL) is keen to acquire up to 10 per cent stake in ONGC Petro-additions (OPaL), the special purpose vehicle formed for setting up a chemical complex at Dahej SEZ, a senior ONGC official said.

"Petronet LNG has shown interest to acquire up to 10 per cent stake in OPaL. The board will take a decision on the matter," ONGC Director (Human Resources and Business Development) A K Balyan told reporters here today.

The company is also looking to hit the capital market in the next fiscal, but is yet to decide on the amount of stake to be made public, he said.

"We are certainly looking at an IPO for OPaL and it is up to the board to decide how much would be offloaded. The IPO is likely to happen next year," Balyan said.

OPaL is a Rs 12,440-crore petrochemical project, being set up by ONGC at Dahej in Gujarat. State-run Oil and Natural Gas Corporation (ONGC) holds 26 per cent stake in OPaL, while 5 per cent stake is with Gujarat State Petroleum Corporation (GSPC).

ONGC has agreed to sell 19 per cent stake in OPaL to GAIL.

Balyan said the project has completed financial closure with help from a consortia of over 20 banks led by State Bank of India.

The company has already awarded equipment contracts worth Rs 7,000-crore to a consortium of Germany's Linde and Korea's Samsung.

Besides, Ineos has been chosen as a technology licensee for polyproplene, Balyan said.

The board will today review new project contracts and the progress of ongoing work, he added.