British Gas approach govt to allow GAIL in Pipavav LNG project
PRESS TRUST OF INDIA

NEW DELHI, JULY 23: British Gas, promoters of the 2.5 million tonne LNG project in Gujarat, has approached government to facilitate equity participation of state-owned Gas Authority of India Ltd (GAIL) in the LNG venture.

The multinational company has approached GAIL as well as the Petroleum Ministry saying they were willing to give equity to the gas marketing company in the $ 300 million venture which is yet to be accepted by GAIL, sources in the Petroleum Ministry said.

Sources said the Petroleum Ministry has asked GAIL to consider the proposal and look into the prospects of picking up equity in the project if the state-owned company found it feasible.

GAIL is yet to decide on the British Gas offer as it already has a 10 per cent stake in another joint venture Petronet LNG which is coming up with a five million tonne LNG import terminal at Dahej in Gujarat, the sources said.

GAIL has to decide whether it could take up equity in Pipavav terminal without affecting the business prospects of Petronet LNG, as GAIL would be marketing the gas from the Dahej terminal along with Indian Oil Corporation, sources said.

Meanwhile, GAIL sources said they were considering the offer made by British Gas and were working on possibilities of picking up equity in this LNG venture also.

While the offer made by British Gas is yet to be considered by GAIL, National Thermal Power Corporation (NTPC) has already agreed to pick up 26 per cent stake in the Pipavav LNG project, the sources said.

Interestingly, NTPC also has a 10 per cent stake in Petronet LNG company and is one of the major consumers of the fuel for its upcoming gas-based power stations in the region.

While NTPC has agreed to pick up LNG from Petronet LNG for its Kawas and Gandhar power stations, the power utility would buy gas from British Gas for its Anta and Auraiya power stations, the sources said.

British Gas is coming up with the LNG terminal along with Pipavav Port and the company is looking at various options for importing the fuel including selecting the fuel supplier through bidding process, sources said.

Petroleum Ministry sources said that in Gujarat region itself about five LNG terminals are being planned with a total capacity of 20.5 million tonnes per annum.

Apart from the Dahej and Pipavav terminals, Reliance is also planning to come up with an LNG terminal of five million tonnes each in Hazira and Jamnagar, the sources said.

Royal Dutch Group of companies is also planning to set up a 2.7 million tonne of LNG terminal in Hazira, they added.

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