06 March 2013 10:06 [Source: ICIS news]
KOLKATA (ICIS)--India’s GSPC LNG Ltd is seeking a strategic investor that will take up a quarter stake in its $732m (€564m) liquefied natural gas (LNG) receiving, storage and regasification terminal under construction at Mundra in Gujarat, a provincial government official said on Wednesday.
The prospective investor would have to be either an LNG supplier or trader with access to gas; offtakers of LNG from regasified LNG terminals; or a, LNG terminal operator to qualify, the official said.
Interested investors have until 5 April to submit their expression of interest (EoI), the official said.
GSPC LNG Ltd is a special purpose vehicle (SPV) created to own and operate the new LNG terminal. The company is 50%-owned by various Gujarat provincial government agencies, which would contribute $110m into the project, and 25%-owned by Adani Enterprises Ltd (AEL) whose corresponding capital injection is $55m, the official said.
A new strategic investor is expected to pour in $55m in capital for a 25% stake in GSPC, the official said.
The balance of $512m funding that the project requires would be raised through borrowings, the official said.
Project construction has started, with commissioning scheduled in 2015-16. The LNG terminal would initially have a capacity of 5m tonnes/year, the official said.
The terminal’s capacity would be progressively ramped up to 10m tonne/year and to 20m tonne/year over a period of time, although no specific timelines have been laid down, the official said.
The terminal would include a berth for receiving LNG tankers (with capacity ranging from 75,000 to 260,000 cubic metres); two storage tanks; and facilities for regasification and evacuation to consumers.
According to industry sources, the project, which was conceived in 2007, was delayed since the Essar group pulled out as partner in GSPC LNG.
($1 = €0.77)
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