The oil company board has given their consent to buy 50% stake in GSPL LNG Ltd. The LNG plant is building up with 5-MMTPA at Mundra port in Gujarat.
The deal will be done by purchasing fresh equity which will soon be issued by the joint venture of LNG terminal, as per IOC officials statement. The joint venture is between Gujarat State Petroleum Corporation (GSPC) and Adani Enterprises Ltd (AEL) and its total value is approximately Rs 5,040 crore. At present, the deal is in its preliminary evaluation stage.
Sanjiv Singh, IndianOil Chairman said, We already have investments across the gas value chain, from LNG import terminals to city gas distribution networks, the major among them being a 5-MMTPA LNG import terminal at Kamarajar port near Chennai, scheduled for commissioning in 2018-19.
IOC is also expanding its Gujarat refinery from 13.7 million tonnes to 18 MMTPA and the cost is estimated to be at Rs 15, 034 crores. Also in the next five years, the company plans to expand all its 11 refineries which consolidate 80.7MMTPA to 100MMTPA.