Indian Oil may drop plan to buy stake in Mundra LNG terminal
State-run Indian Oil Corp. Ltd may drop its plan to acquire as much as 50% stake in the Mundra LNG terminal in Gujarat, three officials aware of the development said. In August 2017, Indian Oil said it has received an in-principle approval from its board to buy a 50% stake in the 5 million tonnes per annum terminal (mtpa) for around 750 crore. The 5,000 crore project is being built by GSPC LNG Ltd, a unit of Gujarat State Petroleum Corp. Ltd (GSPC).
Currently, GSPC owns a 50% stake in the project, while Adani group holds 25%.
Adani and GSPC were looking at inducting a strategic partner such as Indian Oil.
Indian Oil recently informed GSPC LNG that it would not like to go ahead with its plans of picking up a stake in the terminal, said a Gujarat government official aware of the discussions.
It is, however, not clear if Indian Oil would still book LNG import capacity in the terminal.
Indian Oil did not respond to an email sent last week. A GSPC group official declined to comment on the development.
In October, Prime Minister Narendra Modi inaugurated the Mundra LNG terminal, the third LNG re-gasification project in Gujarat after Petronet LNGs Dahej LNG terminal and the Hazira project of Shell Gas BV, a unit of Royal Dutch Shell Plc.
Indian Oil carried out due diligence for the project and has found that there are some issues that come in the way of their proposed plans, said the second official cited above, who also declined to be named.
While one of the main reasons cited by Indian Oi....