The IndianOil board has given its approval in principle for acquiring up to 50 percent equity in GSPL LNG Ltd, which is setting up a 5-MMTPA LNG terminal at Mundra port in Gujarat. This may be done by way of fresh equity that will be issued by the joint venture, as the estimated cost of the project is approximately Rs 5,040 crore.
GSPL LNG Ltd is a joint venture of Gujarat State Petroleum Corporation (GSPC) and Adani Enterprises Ltd (AEL).
The LNG terminal, to be commissioned in the fourth quarter of 2017-2018, will have the receipt, storage, and regasification facilities and will be connected to Gujarat State Petronet Ltd’s (GSPL) existing pipelines network at Anjaar (Gujarat).
IndianOil Chairman Sanjiv Singh told reporters, “We already have investments across the gas value chain, from LNG import terminals to city gas distribution networks, the major among them being a 5-MMTPA LNG import terminal at Kamarajar port near Chennai, scheduled for commissioning in 2018-19.” The board also approved the expansion of the company’s Gujarat refinery from 13.7 million tonnes per annum to 18 MMTPA. An official statement said the project expansion is at an estimated cost of Rs15,034 crore.
IndianOil plans to raise the combined capacity of its 11 group refineries from 80.7 MMTPA to over 100 MMTPA in the next five years through brownfield expansions.