Shell, a translational company with interests in oil and gas, has firmed up plans to invest $2 billion to set up a liquefied natural gas (LNG) processing plant on the countrys west coast.
Shell proposes to sell the processed LNG as fuel to various power plants in the country. The company plans to set up an integrated project for which natural gas would be imported, mainly from West Asia.
It has sought details of the clearances required to set up the project from the state governments concerned, including Maharashtra and Gujarat. However, it is not clear yet whether the transnational company plans to seek equity participation from any of the state governments.
Shell already has a presence in the country through it joint venture, Bharat Shell, with Bharat Petroleum, a public sector undertaking. Shell owns 51 per cent of Bharat Shell, which manufactures and markets the Shell range of lubricants.
Bharat Shell has recently commissioned a Rs 70 crore oil blending project near Mumbai.
Shell has also obtained permission from the government to retail its petroleum products, though in a restricted manner.
The company only got permission to set up petrol pumps in major metropolises.
It is still awaiting the governments permission to enter the domestic retail market in a big way.
