RasGas likely to take 10% in Petronet LNG for Rs 460 crore
1-Jan-1970


Qatar?s RasGas is likely to buy up to 10% equity state in Petronet LNG in a deal valued at Rs 460 crore. PSU companies ONGC, BPCL, Gail (India) and IOC, which together hold 50% stake in PLL (12.5% each), will dilute their stakes by 2.5% each in favour of the new investor.

When asked to comment, PLL CEO and MD Prosad Dasgupta told ET, ?We are in talks with RasGas. We want an investor who can bring something to the table and RasGas is doing the due diligence.? The shares of the company would be offered for around Rs 85 apiece. The share closed at Rs 54.25 on NSE on Wednesday, up 0.46% over the previous day?s close.

RasGas is the first supplier of LNG to India and currently supplies 7.5 million tonnes a year to Petronet?s LNG terminal at Dahej in Gujarat. RasGas and Petronet are in a 25-year sale and purchase agreement for LNG.

After diluting 10% stake to RasGas, BPCL, IOC, Gail (India), ONGC and Gas de France will have stakes of 10% each in PLL. ADB will retain its 5.2% stake, while the remaining 34.8% held by the Indian public.

The company would require Rs 1,700 crore for the expansion of the Dahej LNG terminal from 5 mmtpa to 12 mmtpa. The company has tied up for a debt of $300 million. Of this, $100 million will be raised through FCCB and the balance would be funded by internal accruals.

The company also plans to build a terminal at Kochi at a cost of Rs 2,500 crore by 2010. The company has allocated Rs 300 crore for vessels, Rs 460 crore for new jetty and Rs 150 crore for solid cargo port.

Meanwhile, RasGas has cancelled the delivery of a spot cargo of LNG to Petronet LNG due to technical problems. Says Mr Dasgupta, ?We imported 138,000 cubic metres of LNG from RasGas on January 8. A second cargo was expected around January 22, but the delivery has been cancelled due to some problems at their end.?



Source: The Economic Times, New Delhi
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