GSPC shortlists consultants for LNG project

Gujarat State Petroleum Corporation (GSPC) LNG Ltd has shortlisted four consultants for its proposed LNG terminal project at Mundra in Kutch. These include Purvin and Gertz, CRA International, Poten and Partners, and Denton Wilde Sapte, said sources close to the development.

About thirteen firms had submitted their expression of interest (EOI) of which four were selected last week, sources added. The selected consultant will advise GSPC on procuring of liquified natural. While GSPC has 50% stake in the LNG terminal project, Adani has agreed to pick up 25% stake. GSPC is negotiating with Essar for the rest 25% stake, according to a company official.

GSPC plans to set up 5 million metric tonnes per annum (MMTPA) in Mundra initially. "Ultimately we aim to have a capacity of 20 MMTPA. There is a huge demand for LNG in the country and we might plan terminals at other locations as well," said an official of GSPC. The projected cost for setting up 20 MMTPA is about Rs 12,000 crores, the official added.

Gas demand in India is about 180 million cubic metres a day against supply of 95 mmcmd. The supply is expected to double by next year after new gas fields, including those of Reliance Industries, start production.

In case, GSPC does not find a third partner for the LNG terminal project, it may as well go for an IPO in future, according to sources.

This will be the third LNG regassification terminal in the country. The other two operational terminals are the Petronet LNG-run terminal at Dahej and the Shell India terminal at Hazira, both in Gujarat. Petronet LNG is also expanding is existing 5 mtpa terminal at Dahej to 10 mtpa, while Shell is expanding its terminal to 3.5 mtpa from 2.5 mtpa. The project would be completed by 2013.

Two other LNG regassification terminals are under implementation. The terminal at Dabhol in Maharashtra is being built by Ratnagiri Gas & Power and the Kochi terminal is being constructed by Petronet LNG.

Meanwhile, Gujarat State Petroleum Corporation is planning an initial public offering of 10-20 per cent of its equity shares by end of the year. The company has mandated DSP Merrill Lynch, JM Financial, Kotak, SBI CAP, and Citibank to do the dilution for the IPO.