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Mr Suresh Mathur (right), Managing Director and CEO, Petronet LNG Ltd, and Mr P. Dasgupta, Director Finance, at a press conference in Mumbai on Thursday. - Paul Noronha

Mumbai , Feb. 26

PETRONET LNG Ltd (PLL) is the only company other than Shell India to be short-listed for NTPC's tender for supplying liquefied natural gas to its Kawas and Gandhar power plants.

PLL, which plans to double the capacity of its five million-tonne LNG terminal at Dahej by adding another LNG storage tank of roughly 1,60,000-tonne capacity, hopes to begin supplies to NTPC by March-end, senior officials said.

"We (Shell and PLL) are the only two companies to be shortlisted by NTPC to supply three million tonnes of natural gas to its units. According to the tender conditions, NTPC requires an independent LNG tank for its needs. If we get the contract, PLL will put up a fourth tank in addition to the existing two and a planned third one, to meet this requirement," Mr P. Dasgupta, Director (Finance), PLL, told newspersons.

Mr Dasgupta was speaking at the roadshow announcing PLL's initial public offer, which opens on March 1, and closes on March 9. PLL will issue 26.1crore equity shares of face value Rs 10 each through the book building process within a price band of Rs 13-Rs 15 per share.

Up to 50 per cent of the net offer will be allocated to institutional buyers, 25 per cent to the non-institutional buyers and 25 per cent to retail investors. The company hopes to raise Rs 750 crore through this issue, which will be used for doubling capacity at its five million-tonne LNG terminal at Dahej, Gujarat, Mr S.C. Mathur, Managing Director and CEO, said.

If the company is awarded the NTPC tender, it may add another LNG storage tank of 2.5 million tonne capacity, Mr Dasgupta said. PLL is also planning a 2.5 million-tonne LNG terminal at Kochi.

PLL is a joint venture between GAIL (India), ONGC, Indian Oil and BPCL, which hold 12.5 per cent each in the company. Gaz de France holds 10 per cent in the project while the Asian Development Bank recently picked up a 5.2 per cent stake.

The company will import LNG from the Qatar-based Ras Laffan Liquefied Natural gas Company Ltd, a joint venture between Rasgas and Mobil. GAIL (India) has already tied up the gas sales through agreements with gas user companies in North and West India.

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