Adani Group, GSPC to Construct LNG Terminal at Mundra in Gujarat

Adani Group and Gujarat State Petroleum Corp (GSPC) will construct LNG import terminal at Mundra in Indian state of Gujarat by Decmber 2016, reports Press Trust of India.

GSPC LNG Ltd, a unit of Gujarat government-owned GSPC, on July 24 won approval to become a co-developer of the multi- product special economic zone (SEZ) being developed by Adani Ports at Mundra.

India’s commerce ministry gave nod to GSPC LNG's proposal to 5 million tons a year LNG terminal together with storage and re-gasification facilities over an area of 28 hectares, Press Trust adds.

Once they avail duty free imports, the developers are required to sell a threshold of the produce to units within a SEZ.

According to Press Trust, the GSPC-Adani combine plan to see 3.8 million tons per annum of LNG to units in nearby Dahej SEZ and the one coming up in Mangalore.

Reliance Industries-BP promoted India Gas Solutions along with ONGC and Indian Oil Corp (IOC) have been shortlisted to pick up 25 per cent stake in the project, according to the news agency.

"Essentially, GSPC is looking at a partner which can bring in LNG or can consume the imported liquid gas," an official told Press Trust.