The Hindu Business Line : LNG supplies: GSPC-Adani receives EoIs from 13 parties

Moving forward
The company is also in bilateral discussions with several global LNG suppliers.
DFR in final stages of preparation; expected to be submitted in a couple of days.

Pratim Ranjan Bose
Virendra Pandit

Kolkata/Ahmedabad, Sept. 8 GSPC-Adani combine seems to be making steady progress towards commissioning the proposed LNG terminal at Mundra. The company has received expression of interest (EoIs) from 13 parties from across the world for helping GSPC to tie-up LNG supplies.

“We recently invited EoIs from interested parties to help us in tying up short, medium and long-term LNG supplies at the proposed 5-7.5 million-tonne LNG terminal, slated to be commissioned in 2012. The tender has received adequate response. A total of 13 parties expressed interest in the project,” the GSPC Managing Director, Mr D.J. Pandian, told Business Line.

GSPC holds a controlling 50 per cent stake in the joint venture. The Adani group has a participatory 25 per cent stake.

EoI apart, the company is also engaged in bilateral discussions with several global LNG suppliers. Refusing to divulge details of the negotiations, Mr Pandian said that the company was confident of securing the necessary LNG supplies at the proposed terminal.

On the size of the terminal and the investment required, he said that the detailed feasibility report (DFR) of the project is in its final stage of preparation and is expected to be submitted to the company in a couple of days. Land for the project has already been identified at the Mundra Port and SEZ and is expected to be transferred to the joint venture shortly.

According to Mr Pandian, once the DFR and the front end engineering design report is approved by the GSPC board, the company may go ahead with placing orders for the necessary plant and machinery.

Financial closure

Meanwhile, GSPC-Adani may delay the financial closure of the project till inclusion of a third partner.

“While we are determined to make fast progress towards project commissioning, the cash call for the project may be limited in next couple of months. To take advantage of the situation, we may keep on implementing the project and wait for selling the residual 25 per cent stake in the project to a third partner at a premium,” a source told Business Line.

It may be mentioned that GSPC initially invited Essar to be the third partner in the project. Essar, however, is yet to show any interest. An informal expression of interest from HPCL for 50 per cent stake was turned down by GSPC.

Related Stories:
GSPC rejects HPCL’s proposal for stake in Mundra terminal
GSPC firms up plans for LNG terminal at Mundra

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