JAIGARH: Hiranandani in LNG funding talks
Mumbai-based real estate developer Hiranandani Group is in talks with a group of Indian banks to reach financial closure for its proposed $1bn LNG terminal at Jaigarh south of Mumbai.
A source at project promoter Hiranandani Energy (H-Energy) confirms that State Bank of India (SBI) and Industrial Development Bank of India (IDBI) will be among lenders in the consortium. “We don’t have a lead banker,” he says.
“For now we’re only talking to Indian banks.” H-Energy, he adds, wants to raise $700m loans, $300m equity and is targeting financial closure in the next four months.
Once this is achieved, H-Energy will issue a ‘Notice to Proceed’ to a consortium of Sener and AFCONS which it confirmed as its EPC contractor in October 16, 2014. “We’re aiming to begin construction around August or September (2015) after monsoon rains on the west coast,” we hear.
H-Energy is expected to take up to four years to construct the 8m t/y terminal, for which Sener has already begun engineering work. Jaigarh will operate as a merchant terminal, allowing companies to book LNG capacity to bring in their own cargoes.
H-Energy has signed MoUs for a total 20m t/y of LNG with gas aggregators, traders and end-users such as power, fertiliser and oil refining companies and believes it can sign firm agreements for at least 5m t/y.