The Hindu Business Line : HPCL in talks with MRPL for LNG terminal

The terminal will have an initial capacity to import 2.5 million tonne liquefied natural gas a year and could later be expanded to 5 mt, Mr M.B. Lal, Chairman and Managing Director, HPCL, told presspersons here today. He was speaking on the sidelines of the launch of HPCL's premium diesel oil HP Champion.

Mr Lal said the terminal would need investments of around Rs 2,500 crore and may be set up as a joint venture between HPCL and MRPL.

HPCL holds 17 per cent stake in MRPL, while ONGC holds 72 per cent in the company.

"HPCL does not have a presence in the gas market. And we are keen to enter it," he said. The two companies, having recently initiated talks for tying up LNG supply sources, are considering options to import LNG from either Yemen, Oman, Qatar or Iran.

While ONGC and MRPL will handle procurement of natural gas, HPCL may market the imported commodity, Mr Lal said. The company is also in talks with Shell for picking up a stake in its Hazira LNG import terminal.

In a bid to meet the volatility in international crude oil prices, HPCL will invest Rs 2,000 crore on revamping its Trombay and Visakh refineries to process sour crude up to 80 per cent of their total capacity by 2007.

The investments will be in addition to the Rs 2,400-crore modernisation programme already under way at both refineries.

Mr Lal said the company would "take a relook" at its proposed 6 million tonne Guru Gobind Singh Refinery project at Bhatinda if the Punjab Government did not agree on granting tax benefits for the project.

The company has invested Rs 1,500 crore on revamping its retail outlets over the last three years. Last year, HPCL relocated around 150 retail outlets that were selling less than 100 kilolitres of diesel a month, Mr Lal said.

More Stories on : Alliances & Joint Ventures | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
JB Chemicals gets FDA nod for anti-bacterial molecule

GAIL to offer energy management services for Bangladesh cos

Premier Automobiles seeks shareholder nod for name change

Anil's posers to Mukesh on RIL control

Flashback of a flare-up

ICAI to provide support to Nepal counterpart

Komal Chhabria in fray for SWC liquor biz

Jindal Stainless plans captive thermal unit in Orissa

SAS Motors plans 2 more assembly lines for Angad

Tata Steel in talks for 3-mt integrated plant

ECS opens Chennai office

Tata Steel to come out of national wage settlement

IOC, Oil India ink pact for overseas exploration projects

HPCL in talks with MRPL for LNG terminal

We are making the right moves: Khattar