GSPC plans LNG import terminal in Gujarat  

Gujarat State Petroleum Corporation (GSPC) is thinking of reviving its plans to set up a 5 million tonne LNG import terminal at Pipavav in Gujarat by 2010-11.

GSPC managing director DJ Pandian said the company was looking for a strategic partner for jointly executing the LNG import and re-gassification project.

Sources said GSPC was talking to the Adani Group and state-owned HPCL to set up the project. An overseas gas supplier might also be offered equity in the new project.

When asked, Pandian said, GSPC was talking to several Indian and foreign companies for partnership in the LNG terminal. ?We would retain a minimum of 26% stake and give the rest to other players,? he said.

Pandian also said GSPC would invite bids from four shortlisted global energy giants by November 2 for a possible 30% stake sale in its giant gas field in the Krishna Godavri basin.

?We will be able to decide on a partner in one months time from that date,? he added.

Last month the company had shortlisted four energy majors, including Chevron, BP and ENI, for selling the 30% stake in its gas rich KG-OSN-2001/3 block off the east coast.

The four firms were shortlisted from around 13 firms, which had expressed interest in picking up a stake in the 20 trillion cubic feet gas discovery in the KG basin.

Royal Dutch/Shell had not been able to clear the preliminary qualifying round.

Pandian said GSPC planned to begin gas production from the field by end-2008 or early-2009 and would transport it through a 1,600-km-long pipeline from Kakinada to Gujarat.

The Rs 5,000-crore pipeline would pass through Madhya Pradesh, avoiding Maharashtra.

The GSPC pipeline would follow a different route than the pipeline, being built by Reliance Industries to transport gas from its D6 field to Gujarat, he said. The Reliance pipeline travels from Kakinada into Maharashtra and touches Mumbai before going to Ahmedabad.

Source: The Financial Express, New Delhi, October 11, 2006
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