After initial hiccups and several delays, the joint venture of GSPC and Adani Groups formed for setting up of a terminal for receipt, storage and regassification of imported liquefied natural gas (LNG) at Mundra in Gujarat is now actively looking for “strategic investors” for picking up to 25 per cent equity and rush with the project that it seeks to complete in three years.

The LNG terminal, expected to be commissioned in 2015-16, will be designed to have a berth for receiving LNG tankers of sizes 75,000 M3 to 2,60,000 M3, two LNG storage tanks, and facilities for regassification and evacuation, a senior official told Business Line here on Monday.

GSPC LNG Ltd (GLL) has completed the pre-project activities including Front End Engineering and Design (FEED) and other studies. The company is now in process of selecting EPC contractors for the project through the international competitive bidding route with the help of its Project Management Consultancy (PMC) contractor, M/s Whessoe Project Ltd, UK.

GLL, a special purpose vehicle (SPV), was formed by GSPC Ltd in 2007 to develop an LNG terminal at Mundra. It later entered into partnership with Adani Enterprises Ltd (AEL) and Essar Group. The State Government entities and AEL hold 50 per cent and 25 per cent equity, respectively, in GLL. The balance 25 per cent was held by Essar, which subsequently exited the joint venture. GLL is now trying to find investors for this balance stake.

The terminal, which is expected to involve investments of about Rs 4,000 crore, will have an initial capacity of five million tonne per annum (mtpa), subsequently scalable up to 10 and finally up to 20 mtpa.

The joint venture is looking for its third partner who could invest up to Rs 300 crore for a 25 per cent stake. With a 50 per cent stake, GSPC will have an equity worth Rs 600 crore and APL Rs 300 crore. The balance of investments (Rs 2,800 crore) is expected to be by way of debt.

With this objective, GLL has invited expression of interest (EOI) from “strategic partner(s)” until April 5, 2013, for up to 25 per cent equity investment. For this, GLL has invited LNG suppliers or LNG traders with access to sources of gas, offtakers of Regassified LNG (RLNG) from the terminal, experienced LNG terminal operators and financial institutions. GLL hopes to find this partner in the next one year.

Preliminary work for the project has already started and site identified.

After a detailed project report (DPR), GLL will issue the EPC contract in this financial year for execution of work. For the terminal, GLL is expected to source gas from Australia, Egypt and other countries.

Currently, Gujarat has both of India’s LNG terminals at Hazira and Dahej, with a combined capacity of 13 mtpa. Besides Mundra, the State also plans to set up its fourth LNG terminal at Pipavav, with up to 5 mtpa capacity, in the near future.