Indian Oil Corp, and the Ahmedabad-based Adani group is to take a 50% equity stake in a new 5m tonnes per annum liquefied natural gas receiving terminal at Mundra port.
A newly formed joint venture between India"s largest refiner, the state-owned Indian Oil Corp, and the Ahmedabad-based Adani group is to take a 50% equity stake in a new 5m tonnes per annum liquefied natural gas receiving terminal at Mundra port.
The Rs40bn ($842m) terminal has been promoted by the Gujarat State Petroleum Corp, which will retain the remaining 50% equity.
The terminal"s front-end engineering and design, being handled by Belgium"s Tractebel, is expected to be ready by end-March. The terminal is expected to be commissioned by 2012.
Earlier this month, IOC and Adani had signed an agreement to set up a joint venture company for the distribution of natural gas.
The project, which will be formalised by January 2009, will set up city gas distribution projects in the states of Punjab, Haryana, Uttar Pradesh, Rajasthan and Madhya Pradesh to supply compressed natural gas to automobiles and piped natural gas for domestic and industrial use. The company will also market LNG.
Mundra will be the third port in Gujarat, behind Dahej and Hazira, to have an LNG import facility. The state-run Petronet LNG already operates a 6.5m tpa LNG terminal at Dahej, while a joint venture between Royal Dutch Shell of the Netherlands and Total of France owns a 2.5m tpa facility at Hazira.
Mundra terminal is being planned with an eventual capacity of 20m tonnes per year depending on demand. Its initial capacity of 5m tonnes per year can be increased to 6.5m tonnes per year with minor changes, but future additions would only be made if the demand justified it.