GAIL, IOC to ink agreement to take 49% stake in Adani proj

Gas utility GAIL India Ltd and Indian Oil Corporation (IOC) will tomorrow sign a pact to take 49% stake in Adani Group’s Rs 5 thousand crore Dhamra LNG project in Odisha.

 

While IOC will take 38%, GAIL will pick 11% stake in the proffered 5 million tonne a year (LNG) liquefied natural gas import terminal at Dhamra by 2018-19.

ioc-gail-adani-viralbeer

Adani Petroleum Terminal will hold 49% in Dhamra LNG Terminal Pvt Ltd – the enterprise setting up the LNG plant. The remaining 2% interest will be held by financial institutions. According to sources a formal agreement signing convention is planned for tomorrow where Minister of Oil Dharmendra Pradhan, will also be there.

Last year IOC signed up to use 60% of the terminal capacity for importing gas for its refineries at Paradip in Odisha and Haldia in West Bengal.

GAIL also had signed up for terminal’s regassification capacity of 1.5 million tonnes.

IOC and GAIL were firstly bargaining for 50% stake in the project, but Adani craved to retain controlling interest.

adani-viralbeer

In March last year, equity in the Adani terminal follows GAIL dropping plans to set up a floating liquefied natural gas import terminal at Paradip. In 2012 IOc also had signed an MoU with DPCL- Dhamra LNG Port Corp Ltd to start an LNG terminal at the port.In May last year, after shelving their respective plans, the firms signed a agreement with Dhamra LNG Terminal Pvt, a enterprise owned by Adani Enterprises.

Dhamra will be the 6th LNG project declared on the east coast. While Gas Authority Of India Ltd has given up plans of a 4-mt project at Paradip. A firm, Petronet LNG in which IOC and GAIL are promoters, has suspended plans to set up a 5-mt a year LNG provision at Gangavaram in Andhra Pradesh.

GAIL, together with Shell and GdF, has proposed a 3.5-mt floating liquefied natural gas terminal at Kakinada while IOC is constructing a 5-mt facility at Ennore in Tamil Nadu.

 

Hiranandani Group, a Real estate player is looking to setup 4-mt floating LNG import terminal a Rs 2,400 crore project, off Haldia in West Bengal.

With GAIL, which operates and owns bulk of the country’s cross-country pipelines, and IOC whose refineries are a huge user of gas, joining Dhamra, the destiny of LNG terminals in Andhra Pradesh is uncertain. Dhamra can stand on all of the demand in Andhra Pradesh and Odisha.

In Bhadrak district of Odisha, Dhamra port is an all- weather deep water port, according to sources.

In October 2013 GAIL with the Paradip Port Trust had signed an MoU for setting up of the LNG import terminal. While the port was to fund Rs 650 crore in dredging and breakwater, GAIL was to support Rs 2,458 crore for the 4-mt terminal which can be extend to 10 mt. However the plan was dropped in March last year.

via

Leave a Reply

Your email address will not be published. Required fields are marked *