FSRU: High hopes for IGS at Mumbai Port Trust

Vol 18, PW 16 (09 Apr 15) Midstream & Downstream
     

Mumbai Port Trust (MbPT) has reversed its position and is now doing all it can to ensure Reliance and BP joint venture India Gas Solutions (IGS) can participate in the race to set up a 5m t/y FSRU at Mumbai.

State-owned MbPT is talking to the shipping ministry seeking clarifications on 2009 guidelines from the now defunct Planning Commission which would keep IGS out of the race. IGS wants to class Reliance and BP as ‘associate companies’ to support its bid but according to Clause 2.2.9 of the Request for Qualification (RfQ) documents an 'associate company' must control more than 50% of the shares in a JV - Reliance and BP each hold only 50% in IGS.

Some bidders say the problem could easily be solved if MbPT followed the Companies Act (2013) under which an associate company need only hold 20% or more shares in a JV. A senior MbPT source declined to comment.

“How do you expect me to share such things with you?” he asked. “All I can say is that we want the project to succeed and we’re working towards that end.

” A potential bidder says, of the 31 companies interested in the project, IGS is best placed to ensure its success thanks to BP’s global gas portfolio and Reliance’s domestic gas transportation and marketing strengths.

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