IOC Eyes GSPC's Stake in Mundra LNG terminal
Indian Oil Corp. Ltd (IOC) wants to buy debt-laden Gujarat State Petroleum Corp.’s (GSPC) entire stake in the in the under-construction Rs 4,500 crore ($672 million) GSPC-Adani liquefied natural gas (LNG) terminal in Mundra, Gujarat, reports Livemint.
GSPC is looking to exit the 5 million tonnes a year LNG import terminal project, which is likely to be completed by mid-2017, says sources.
GSPC LNG Ltd, a unit of GSPC, holds a 50% stake in the project with the Adani Group owning 25%; the remaining 25% has been earmarked to be sold to a strategic partner.
“We received an offer from GSPC LNG Ltd to buy their 50% stake in the Mundra terminal. But post that communication we haven’t heard from GSPC,” a senior Indian Oil official said on condition of anonymity.
“We don’t know if GSPC has approached other players in the market too for the stake sale,” the official added.
Earlier media reports said that with a view to expand its gas business, IOC is keen to buy a stake in Mundra terminal but does not want GSPC to exit the project completely.
IOC, the country's largest oil company, wants the state government entity to remain as a part of the project for smooth operations, sources said.