Indian Oil Corp Eyeing Stake in LNG Projects

Indian Oil Corporation (IOC) has is looking to acquire stake in LNG terminals at Mundra and Dahej in Gujarat and Dighi in Maharashtra, reports Business Standard newspaper.

The state owned energy firm is interested in picking up 25 per cent stake in LNG project in Mundra, which is being set up by Gujarat State Petroleum Corporation (GSPC).

The Dahej terminal is operated by Petronet LNG while eight-million-tonne LNG terminal at Dighi port in Maharashtra is being set up by Mumbai-based Hiranandani Group.

A K Marchanda, company’s executive director, business development, told Business Standard that the company wants to expand its presence in the natural gas sector and it is emerging as an alternate fuel.  

IOC is in talks with three foreign companies for the proposed LNG terminal project at Ennore, which will go on stream in the next three to three-and-a-half years and it will be executed through a joint venture, the newspaper adds.

“We are talking to three large foreign companies, which can source LNG for us. If they are interested, we can give up to 10 per cent stake in the joint venture,” Marchanda told Business Standard.

Tamil Nadu Industrial Development Corporation will have a five per cent stake in the joint venture. “IOC and the state government agency will have a 50 per cent stake, while the balance will be held by FIIs (foreign institutional investors) and the foreign partner,” said Marchanda.

While the initial capacity of the Ennore terminal will be five million tonnes a year (mtpa), the company plans to expand it to 15 mtpa.

IOC has also signed an initial deal with Dhamra Port to build a five-million-tonne-a-year LNG plant in the state of Odisha.

Sign-up for our free weekly newsletter update via email here