The Hindu Business Line : Adani mulls jt venture for LNG terminalling

Ahmedabad, July 11 The Adani group is exploring the possibility of joint venture with a user company for entering into LNG terminalling. The group is also planning it big on petroleum product trading (bunkering) and exploration and production of oil and gas.

A senior group official said that various options were explored for terminalling proposed during the Vibrant Gujarat summit. “We have already entered into an MoU with Gujarat State Petroleum Corporation, which is a major user group. We are now looking forward to bring a user group as a partner — preferably minority partner — in the project. However, we are still at an early stage of discussion and evaluating the feasibility of the project proposal,” he said.

According to him, the group aims to hold a majority stake in the project proposed to be set up leveraging both the long-term commitments and tolling models. “As things stand now the project may be firmed up soon or may be postponed two to three years down the line,” the official said.

Underlining the importance of the business to the group’s activity, he said that Adani Enterprises — the holding company for all its energy-related foray — needs to ensure back-end supplies of gas to fulfil its commitments in the distribution segment, spearheaded by Adani Energy. The Adani group has recently formed a joint venture with Welspun group to form a 65:35 Adani Welspun Exploration Ltd. The latter will henceforth pursue the exploration interests on behalf of Adani Enterprises. “We are planning aggressive biding in NELP-VII,” headed.

Adani currently holds three onshore exploration blocks two in India (one each in Assam and Cambay basin in Gujarat) and one in Thailand. The product sharing agreement has been signed on the Thailand block and seismic study will start shortly.

Meanwhile, the group has made progress in petro-product trading. “We have entered this sector six months back and is currently supplying fuel oil to ships entering Mundra Port. Since the port enjoys tax breaks due to SEZ status, we could match our prices with Singapore,” the official said.

“While there is scope for future growth of business in the Gulf of Kutch, we are now working out a detailed strategy for entering into bunkering services nationwide,” he added.

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