GAIL to take 25% equity in Kakinada LNG project
Thursday, 05 December 2002, 20:30 IST
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NEW DELHI: GAIL India Ltd has finally decided to pick 25 per cent equity in the Rs 19,400-crore Kakinada LNG import project in Andhra Pradesh, company chairman and managing director Proshanto Banerjee said Thursday. The consortium includes BP Amoco, Petroliam Nasional Berhad (Petronas) of Malaysia and Cocanada Port Company, a special purpose vehicle of the Singapore-based International Sea Ports Ltd (ISPL), which is operating the Kakinada port. Banerjee appeared unfazed by the huge natural gas find off the Andhra coast, and said the 2.5 million tonne per annum capacity project would meet the huge gas deficit in the southern and eastern region. Partners in Kakinada Indian Oil LNG Consoritum (KIOLC) would be executing a joint collaboration agreement soon to implement the project on a 'fast track' basis and plans to offer a gas supply contract including price, to all the potential customers in Andhra Pradesh and other state. Originally, IOC was expected to hold 26 per cent stake in the project, Cocanada Port Company 22 per cent and the remaining was to be distributed equally to Petronas and BP Amoco. "The new equity structure of the project will be worked out soon," Banerjee said. Along with IOC, ONGC and Bharat Petroleum, GAIL holds 12.5 per cent stake in Petronet LNG Ltd which is executing five million tonne capacity LNG import terminal at Dahej (Gujarat) and planning another 2.5 million tonnes terminal at Kochi in Kerala.
Source: IANS
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