Petronet LNG to double capacity at Dahej terminal

26-02-04 Petronet LNG Ltd (PLL) has decided to double the capacity of its regasification terminal at Dahej in Gujarat from 5 mm tpy to 10 mm tpy. The expansion would cost the company Rs 750 crore.
PLL managing director and CEO Suresh Mathur said that the proceeds from the offer for sale, which opens on March 1, 2004 would be utilised for the expansion of the terminal. PLL director (finance) P. Dasgupta said that the expansion would cost the company Rs 750 crore. Of this, the promoters will be required to pump in at least Rs 250 crore, he added.

Mr Mathur added that the offer for sale would constitute nearly 35 % of the fully diluted paid-up capital of the company. The offer, through 100 % book building process, would be in a price band of Rs 13-15. The offer opens on March 1 and closes on March 9, 2004.
Mr Mathur added: "This offer will give us a chance to increase our shareholder base and take the project forward." He said that Asian Development Bank (ADB) has recently invested in the company and picked up a 5.2 % stake. While Hindustan Petroleum Corporation Ltd (HPCL) is also keen to pick up a 10 % stake in the consortium, Mr Mathur added that this was not possible since the public sector companies already hold a 50 % stake in the consortium.

The promoters include Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOC), Oil and Natural Gas Corporation (ONGC) and Gail India Ltd (GAIL). The company, the first in the country to import LNG, has completed import of the first consignment of LNG through RasGas from Qatar. However, looking at the demand for LNG, the company is also planning spot buying of LNG.
Mr Dasgupta added that the company had obtained all the necessary approvals to set up a 2.5 mm tpy LNG terminal at Kochi but was studying the demand. He added that the terminal at Kochi would be feasible if NTPC buys LNG. The company is in talks with NTPC but nothing has been finalised.

Source:, New Delhi, March 10, 2004
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