Delay for Petronet-LNG agreement with GMB

Vol 7, PW 3 (23 Apr 03) News in Brief

Petronet-LNG is waiting impatiently to sign a concession agreement with the Gujarat Maritime Board for its 5m t/y LNG import terminal at Dahej but delay in Gujarat is holding it up.

Petronet-LNG has sent the relevant documents to the Gujarat Maritime Board which in turn forwarded them to the Gujarat Infrastructure Development Board three months ago. But nothing has moved since.

"The GIDB is unable to take action because it is not fully constituted," reveals a source. "Some members have not been appointed." The absence of a concession agreement is a major hurdle to achieving financial closure for the Dahej project.

It is also affecting Petronet-LNG's plans to develop Dahej as a dry cargo port with the Adani Group.