The US-based energy major Unocal, which is set to enter the Indian energy scenario, has formed a consortium with compatriot CMS Energy and the Aditya Vikram Birla group to bid for the estimated $2-billion liquefied natural gas (LNG) project coming up at Ennore, Tamil Nadu.
The consortium has been shortlisted for the project which is being promoted by the Tamil Nadu Industrial Development Corporation (TIDCO), along with four other consortium.
The project operations will include setting up of gas terminals, gas pipelines and power generation. The bids are under commercial scrutiny of the Tamil Nadu state government.
The company is operating through its wholly owned Indian subsidiary Unocal Bharat, and is geared to take up project execution which may entail investments well over $5 billion in south and eastern India.
Besides the tie-up with the Calcutta-based Paharpur Cooling Towers which entails an investment of $2 billion, the company's Indian subsidiary is also negotiating for a $100-million 100-mw gas-based power project near Bangalore. The company is interested in two other mega projects in the country, as it is shortlisted for a port project in partnership with Natelco at Moroli in Gujarat and another LNG project coming up in Kakinada.
We have divided India into three sectors: north-east, north-west and the south. The company is getting more focussed on the north at the moment, as this involves cross-border pipelines, said Chris Keene, vice-president, Unocal Bharat. Speaking to Business Standard, Arun Metre, managing director, Unocal Bharat said: We are looking at a field which entails major investments and a long gestation period. We have to be patient.
In the north-western side, the company is taking a lead in the proposed mega cross-border pipeline project called the Central Asia Gas Pipeline project (Centgas) which is a consortium formed with companies of six countries with the government of Turkmenistan.
They are developing a project to build a 790-mile pipeline to link Turkmenistan's abundant proven gas reserves from the Daulatabad gas field which has an estimated at 25-trillion cubic feet to Pakistan.
Plans are afoot to extend this pipeline from Multan in Pakistan to New Delhi.
The equity distribution of the project is: Unocal Corporation (46.5 per cent), Delta Oil Company of Saudi Arabia (15 per cent), the Turkmenistan government (seven per cent), Indonesia Petroleum (6.5 per cent), Itochu Oil Exploration Co of Japan (6.5 per cent), Hyundai Engineering and Construction, Korea (five per cent), and the Crescent Group of Pakistan (3.5 per cent). RAO Gazprom of Russia has indicated an interest in signing the consortium agreement formalising a 10 per cent share in the project in the future.
