Shell May Buy Stake in GAIL India's Proposed FLNG Terminal

Royal Dutch Shell is likely to take a 30 percent stake in state-owned GAIL India's proposed floating liquefied natural gas (FLNG) import terminal project at Kakinada in the state of Andhra Pradesh, reports news agency Press Trust of India (PTI).

Sources privy to talks said Shell, GAIL and the AP government are talking about the possible equity structure, adds PTI.

The news agency also says that GDF Suez, with whom GAIL originally planned the Kakinada terminal, will take 26 percent. Rest 44 percent will be held by Andhra Pradesh Gas Distribution Corp Ltd a company jointly promoted by GAIL Gas Ltd and Andhra Pradesh Gas Infrastructure Corp Pvt Ltd.

"Shell can confirm that the company is in exploratory discussions with GAIL and other potential partners on the Kakinada LNG project. As the discussions are still preliminary, we cannot comment on any specifics at the moment," a spokesperson from the company was quoted by PTI as saying.

The 3.5-5 million tonnes per annum capacity terminal is likely to be commissioned by 2015. 

While Shell already operates a 5 million tonne LNG import facility at Hazira in Gujarat, GDF Suez is present in India in the natural gas business since 1997, with a 10 percent stake in Petronet, the owner of LNG import terminals in Dahej and Kochi.

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