Petronet buys 26% stake in LNG vessel firm for Rs 100 cr

State-run natural gas importer Petronet LNG Ltd (PLL) on Tuesday said it has purchased 26 per cent stake in the shipping consortium that has built the ships that transport its liquefied natural gas (LNG) imports.

"We have now decided to take 26 per cent equity in India LNG Transport Company (No 4) Private Limited," Petronet Director (Finance) R.K. Garg said here.

Singapore-based India LNG Transport Co (No 4) had won the contract from Petronet to build and operate a 173,000 cubic meter-capacity LNG ship 'Prachi', which has delivered its first cargo from Australia to Petronet's Dahej terminal in Gujarat.

State-run Shipping Corporation of India (SCI) and NYK Line of Japan hold 26 per cent stake each in India LNG Transport Co (No 4), while 22 per cent each is held by Mitsui OSK Line and K Line.

"It is less than Rs 100 crore," Garg said, referring to the consideration paid for the stake, and added that agreements for Petronet taking over the equity had been executed and the money paid.

The consortium had won the tender by quoting the lowest charter hire price of a little over $78,000 per day for 19 years for transporting LNG from Australia.

While, Prachi is the fourth LNG vessel to be hired by Petronet, the earlier three - 'Disha' 'Rahi' and 'Aseem'- are all deployed for carrying LNG from Qatar.

"We did not take any equity in first two vessels but exercised our right and took 3 per cent in the third," Garg said.

He also said that all four LNG ships will be managed by SCI.

--IANS

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