Mitsui wants Mundra LNG stake as Adani sulks
Japanese giant Mitsui is the latest to show interest in the proposed LNG terminal at Mundra.
PETROWATCH learns a delegation from Mitsui visited Gandhinagar last month (December) for talks on securing a 25% stake in the project. GSPC (50%), which promotes the proposed 5m t/y terminal, partners Gujarat-based Adani Energy (25%) but wants to give the remaining equity to a third partner who can ensure long-term LNG supplies.
“Now we have three firm proposals in hand,†a GSPC source tells us, “from BG, Mitsui and Indian Oil. We are also in talks with Gazprom and RasGas.
†But Adani is unhappy with these plans for a third partner and wants instead to increase its own stake to between 40% and 50%. Our source adds that the equity break-up between GSPC and Adani is likely to be finalised by March when Belgium-based Tractebel Engineering submits its FEED report on Mundra.
“After all partners agree their respective stakes,†we hear, “GSPC may then offer some of its equity to banks, financial institutions or even to the general public.†Industry sources tell us the Mundra LNG terminal does not need a breakwater.
“It is an all-weather port,†says a source “and has a natural â€کdraft’ (good water depth).†Three LNG storage tanks and a regassification unit will be set up on 28 hectares of reclaimed land at Mundra, we hear.
“If all goes to plan the first phase of the Mundra project will be running by end-2013 or early 2014,â€says GSPC. IOC submitted its proposal for a stake in the Mundra LNG project to GSPC in mid-2009 and BG submitted its proposal in September 2009.
BG has also made a formal commitment in writing that it can secure 2mt/y of LNG for Mundra. When constructed the Mundra LNG terminal will be the third in Gujarat after Dahej and Hazira.
