Gujarat Maritime Board acquires 39% of GSPC LNG

Vol 23, PW 11 (09 Apr 20) Midstream & Downstream

Mundra’s Joint Venture promoter is still called GSPC LNG, but as of April 1, loss-making GSPC is no longer in the picture - replaced by the Gujarat Maritime Board (GMB).

"GSPC began moving out from GSPC LNG early last fiscal (2019-20)," a senior Gandhinagar source tells us. On April 30 (2019) the Gujarat government told GMB to pump Rs500cr into GSPC LNG.

"In return for this, the GMB has received equity shares," we hear. Early last month (March 2020), the Gujarat government decided to infuse an additional Rs87.5cr ($11.44m) into GSPC LNG.

"As of April 1, 2020, GSPC LNG is no longer a GSPC group company," our source tells us. The new shareholding pattern in the 5m t/y LNG terminal is GMB with 39%, Adani with 25%, and the Gujarat government’s energy and petrochemicals department with 11%.

Many speculated that GSPC would keep at least 11% in the company in line with the Gujarat LNG policy drafted in 2012. But it seems the government decided otherwise after GSPC became a subsidiary of another Gujarat government company Gujarat State Investment (GSIL) in May 2019, transferring debts of Rs6000cr ($800m) onto GSIL’s books.

GSPC will, however, continue to source LNG cargoes on behalf of GSPC LNG, which does not yet have "creditworthiness in global LNG markets." To date, GSPC had sourced all five LNG arrivals at Mundra since January 22 (2020) when it commissioned the terminal.