GSPC to split Mundra stake with Petronet-LNG

Vol 20, PW 25 (07 Sep 17) Midstream & Downstream

Until now it was believed GSPC would completely exit the Mundra LNG project.

But it now seems more likely to hang on by splitting a minority 25% stake with Petronet-LNG. "We don't know yet what the final GSPC stake will be," confirms a senior GSPC source.

"Whatever stake we work out we're likely to share it with Petronet-LNG." Whether Petronet-LNG managing director Prabhat Singh agrees is another matter. "Singh might not be happy with a minority stake," we hear.

Hugely indebted GSPC currently holds 50% in the 5m t/y under-construction Gujarat terminal; this will eventually go to IndianOil with 25% still with Ahmedabad-based Adani. Under the new plan GSPC is likely to split the remaining 25% with Petronet-LNG.

A Gandhinagar source tells us GSPC is bound by the state's LNG policy prepared by former managing director DJ Pandian under which it must retain a minimum 11% in the state's LNG terminals. "Or Adani could be asked to share its 25% with Petronet-LNG?" we hear.

In no doubt is that GSPC is happy to welcome Petronet-LNG's experience. "What more can you ask for?" exclaims our GSPC source.

Will Petronet-LNG boss Singh remember when GSPC came to his rescue during negotiations with RasGas over long-term LNG? "GSPC backed Singh," we hear. "Our bargaining skills helped." In 2015, RasGas agreed to halve its delivered LNG price and adjust $1.5bn in accumulated penalties over 13 years.

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