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GSPC to commission Mundra LNG terminal in 2-3 months

Press Trust of India  |  New Delhi 

State Petroleum Corp (GSPC) will commission a 5 million tonnes a (LNG) import terminal at in in next two to three months, its Jagdip said.

will be the third import terminal in to import super-cooled natural gas (or LNG) in cryogenic ships and then re-converting the liquid fuel into its gaseous state before transporting it by pipelines to customers.

GSPL LNG Ltd, a group firm which is implementing the project in partnership with Adani Group, will look at inducting a strategic partner like Corp (IOC) once the terminal is fully operational, he told here.

"We will commission terminal by August-end or mid-September. It will operate at 1.5 million tonnes a year capacity for first one and a half years before scaling up to full capacity," Singh, who is also the Chief Secretary of the state, said.

The Mundra terminal, whose capacity will be expandable to 10 million tonnes per annum in future, is designed to have a berth for receiving LNG tankers of sizes 75,000 cubic metres to 2,60,000 cubic metres, two LNG storage tanks of capacity 1,60,000 cubic metres each, facilities for regasification and

Gujarat already has a 15 million tonnes a year import facility operated by Petronet at Dahej and another 5 million tonnes terminal at Hazira that is run by

Besides, Dahej and Hazira, currently has two more LNG terminals - Dabhol in and Kochi in Kerala, both with 5 million tonnes a year capacity. More import terminals are planned on the as well as on the west to meet the fast growing of the country.

Singh said the owned company has decided to commission the import terminal first and then look at a strategic partner.

"We have been in talks with IOC but as partnership was delayed we have now decided to first commission the terminal and then see who can we get as a partner," he said.

IOC had in August last year stated that it will acquire up to a 50 per cent stake in the Adani Group-backed import terminal in Gujarat for an estimated Rs 750 crore.

The board of India's largest firm gave "in-principle approval for acquiring up to 50 per cent equity in GSPL LNG Ltd, which is setting up a 5 million tons per annum at in Gujarat, the company had said in a statement.

GSPL LNG is a joint venture of and GSPL LNG will hold the remaining 50 per cent stake in the Adani and are equal partners in GSPL LNG.

While the company had not given the acquisition cost, an said roughly 30% of the Rs 5,040 crore project cost is equity and IOC would pay half of it.

"Once the project is complete, we can command a premium," Singh said.

He said Mundra will be connected to Gujarat State Petronet Ltd's (GSPL) existing at Anjaar, Gujarat.

When GSPL LNG put up on offer stake in the project four years back, eight firms including GAIL had expressed interest in buying the stake but only three were shortlisted. Besides IOC, Gas Solutions, the equal joint venture between the Mukesh Ambani-led and Europe's second-largest firm BP, and state-owned (ONGC) were shortlisted.

Singh indicated that the company may run a new process to select a strategic partner. "Once the terminal is complete we can start looking at who can come in... lets see its too early to say," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, July 08 2018. 12:55 IST
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