Still no LNG from Mundra as Adani-GSPC fight

Vol 22, PW 8 (07 Feb 19) Midstream & Downstream

More than four months after it was inaugurated by Narendra Modi on September 30 (2018), the 5m t/y Mundra LNG terminal is yet to be commissioned as partners GSPC and Adani Gas continue to squabble over past costs.

At the last meeting between Adani and officials from the Gujarat energy and petrochemicals department in January, Adani repeated a demand to be compensated for Rs1200cr ($169m) spent on port infrastructure and dredging of the shipping channel. "Adani is not interested in commissioning Mundra," claims an exasperated Gandhinagar source.

"Whenever a meeting is scheduled Adani pops up with a new agenda." Some believe the government is reluctant to be seen to give in to demands by Adani with national elections expected between April and May 2019.

"Narendra Modi is close to Gautam Adani and Anil Ambani," adds an observer. "Already the BJP has paid a heavy price losing the Rajasthan, Madhya Pradesh and Chhattisgarh elections last year (2018)."

Others believe Adani is deliberately using delay tactics. "There is more going on here than meets the eye," says a second source.

"Adani has something big lined up for Mundra." In our January 10 (2019) edition we reported talk in Gandhinagar that Adani's LNG ambitions are growing amid expectations it wants to double its Mundra stake from 25% to 50% following IndianOil's decision to walk away from the project.