GSPC to sign agreement with Adani

Vol 18, PW 9 (18 Dec 14) News in Brief

GSPC LNG is confident it will have a sub-concession agreement in place at Mundra port by January with partner Adani Group for a proposed 5m t/y LNG terminal.

GSPC LNG tells us Adani has finally agreed to sign the much-delayed 20-year sub-concession where GSPC will pay Rs65cr ($10m) to Adani every year to use the waterfront and other infrastructure including land and marine services. For seven years Adani refused to sign the agreement as it holds the waterfront lease from the Gujarat Maritime Board.

GSPC feared without a sub-concession it would leave itself open to bullying by billionaire Gautam Adani. After signing the sub-concession, GSPC LNG plans to announce the name of a third strategic partner.

It has shortlisted BP and Reliance joint venture IGS, IOC and ONGC. GSPC (50%) shares GSPC LNG with Adani (25%).

By February 2015, GSPC LNG is hoping to achieve financial closure by signing a syndicated loan deal with 15 banks led by SBI Caps.