Petronet LNG seeks global partner for eastern Indian terminal

07 November 2012 06:15  [Source: ICIS news]

KOLKATA (ICIS)--Petronet LNG Ltd (PLL) is seeking a global collaborator to provide technical support in the construction of eastern India’s first liquefied natural gas (LNG) terminal at Gangavaram Port in Andhra Pradesh province, a company official said on Wednesday.

“PLL would have a minimum of 70% stake in the LNG terminal project, while 10% would be offered to Gangavaram Port, the port operator. The balance would be offered to a foreign partner for technical and gas sourcing support services,” the official added.

The foreign partner will hold a minority stake of 15-20%, according to the official.

The terminal will have a capacity of 5m tonnes/year in the first phase and this will be ramped up to 10m tonnes/year in the second phase, the official said.

The company expects to invest $830m (€647) in the construction of the terminal, the official said.

Having a strategic global partner, apart from offering technical support at the design and construction stage, will also ensure services in global sourcing of natural gas at competitive prices, the official said.

PPL located the terminal at Gangavaram Port because of the availability of deep draft at the port and close proximity to the proposed Petroleum, Petrochemicals, Chemicals Investment Region (PCPIR) at Vishakhapatnam-Kakinada, ensuring a consumption centre, according to the official.

Hindustan Petroleum Corp Ltd (HPCL) is the PCPIR’s anchor investor, with the construction of a $5.9bn refinery and petrochemical complex with a 15m tonnes/year capacity.

LNG is a favored clean and safe fuel, and is expected to be in demand for use as petrochemical feedstock, fuel for petrochemical production and industrial captive use at facilities in the PCPIR, the official added.

PLL is a joint venture of GAIL India, Oil & Natural Gas Corp (ONGC), Indian Oil (IOC) and Bharat Petroleum Corp Ltd (BPCL) – which are all oil exploration, production, transportation and marketing companies majority-owned by the Indian government.

PLL operates India’s first LNG terminal at Dahej in the western Indian province of Gujarat, and a second terminal at Kochi in southern India is scheduled for completion in early 2013.

($1 = €0.78)

By: Ajoy K Das
+65 6780 4359

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