Banks offer Petronet-LNG more money

Vol 7, PW 5 (21 May 03) News in Brief

By the end of December 2003, Petronet-LNG hopes to have found new partners for the balance 30% equity in its 5m t/y Dahej LNG project.

"We are talking to a few financial institutions and other non-strategic investors," reveals a source. Promoters ONGC, GAIL, BPCL and IOC share half of PLNG's equity and Gaz de France holds 10%.

PLNG expects its supplier RasGas to take 10%. Meanwhile, 19 banks, including the Asian Development Bank are offering PLNG Rs2, 145cr ($446m) to meet its long-term project finance and working capital needs at Dahej.

These banks have also offered Rs750cr ($156m) in stand-by letters of credit for LNG purchase and ship charter payments. PLNG wants to use some of the Rs2, 145cr to repay a Rs1, 400cr short-term loan borrowed at a 10.5% annual interest rate.