IOC might buy GSPC’s stake in Mundra LNG terminal

Indian Oil Corporation is in talks to buy debt-laden Gujarat State Petroleum Corp’s (GPSC) stake in the under-construction ~4,500-crore Mundra LNG import terminal in Gujarat. GSPC is looking to exit the five million tonnes a year LNG import terminal project, which is likely to be completed by mid-2017. It has offered its 50 per cent stake in the terminal to IOC.

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

GSPC is looking to exit the five million tonnes a year terminal project, which is likely to be completed by 2017. It has offered its 50 per cent 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 the Mundra terminal but does not want GSPC to exit the project completely.

IOC, the country’s largest oil company, wants the state government entity to remain as 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 per cent interest in the project. Adani Group holds 25 per cent while the remaining 25 per cent is to be bid to a strategic partner.