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IOC mulls buying GSPC's stake in Mundra terminal

Last Updated 24 July 2016, 16:24 IST

 Indian Oil Corporation (IOC) is in talks to buy debt-laden Gujarat State Petroleum Corp’s (GPSC) stake in the under-construction Rs 4,500-crore Mundra LNG import terminal in Gujarat.

GSPC is looking to exit the 5 million tonnes a year LNG import terminal project, which is likely to be completed by mid-2017. It has offered its 50% stake in the terminal to IOC, sources privy to the development said.

With a view to expand its gas business, IOC is keen to buy a stake in Mundra terminal but does not want GSPC to exit the project completely. IOC wants the state government entity to remain a part of the project for smooth operations, sources said.
The terminal is not connected with any pipeline for shipping gas to consumers. To lay a pipeline to the nearest grid, it would require state government support and with GSPC on board, it could be done easily, according to IOC.

Sources also said IOC is keen to take half of GSPC stake and wants the Gujarat government entity to keep the remaining 25 per cent.

GSPC LNG — a unit of GSPC — holds 50% interest in the project. Adani Group holds 25%, while the remaining 25% is to be bid to a strategic partner, the shortlist of which also included IOC.

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(Published 24 July 2016, 16:24 IST)

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