Malaysian Government’s oil and natural gas firm Petronas is likely to buy a stake in Indian Oil Corporation’s lNG import terminal at Ennore. Petronas, is the second firm after Petronet lNG ltd to have expressed interest in taking a stake in the Ennore plant.
“Petronas has expressed interest in taking a stake. Nothing has been finalised so far. It’s at a preliminary stage as of now,” IOC Chairman Sanjiv Singh told reporters without giving the details of stake sale at an event while signing Memorandum of Understanding (MoU) with Oil Marketing Companies (OMCs) under the Ministry of Petroleum and Natural Gas (MoPNG) for distribution of energy efficient appliances.
The capacity of lNG import terminal at Ennore is about 5-million tonne per annum (MTPA) which is at the under-construction stage. IOC holds 95 per cent stake in the Rs 5,151-crore Ennore lNG import terminal, which is expected to be completed by June 2018. Tamil Nadu Industrial Development Corporation (TIDCO) has 5 per cent. The state-owned refiner wants to retain a minimum 50 per cent stake in the project and so, practically 45 per cent stake is available for the taking. “There is Petronas and then, there is Petronet which has also expressed interest. We have to see what fits our business,” the IOC chief said.
Singh, however, clarified that mere taking equity will not guarantee any company of a proportionate capacity on the import terminal. “Capacity booking (for import of own lNG cargoes) is separate than equity stake. They are two different things,” he said.
The IOC board had earlier this month given ‘in-principle’ approval to acquire up to 50 per cent stake in Adani Group- backed Mundra lNG import terminal in Gujarat for an estimated Rs 750 crore. GSPl lNG ltd, a joint venture of Gujarat State Petroleum Corporation and Adani Enterprises ltd, is setting up a 5- million tonne per annum (mtpa) lNG terminal at the Mundra port in Gujarat.
Singh, however, said IOC is in talks with GSPl about valuations of the stake. “Going by a back-of-the-envelope calculation, roughly 30 per cent of the Rs 5,040-crore project cost is equity and IOC will pay for half of that. A final number will be arrived at after the valuation exercise is completed,” he added.
The Mundra lNG terminal will be commissioned in the fourth quarter of 2017-18. As the second-largest natural gas player in the country, IOC is making significant investments in natural gas infrastructure and marketing, in line with the country’s changing energy mix. “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-MTPA lNG import terminal at the Kamarajar port near Chennai, scheduled for commissioning in 2018-19,” Singh said.