Indian Oil Corp had decided to buy up to 50% stake in a Rs 5000-crore liquefied natural gas (LNG) terminal being jointly set up Adani EnterprisesBSE 0.00 % and Gujarat State Petroleum Corp (GSPC) at Mundra, Gujarat.
Indian Oil’s board has approved taking up equity in the 5 million tonnes LNG terminal expected to be commissioned by March, the company said in a statement. The terminal will be connected to the existing pipeline network of Gujarat State Petronet LtdBSE -1.79 % (GSPL), a unit of GSPC, at Anjaar in Gujarat.
Last year, Indian OilBSE 7.99 % had agreed to buy stake in another LNG terminal being developed by Adani Enterprises at Dhamra, Odisha.
“As the second largest player in natural gas in the country, Indian Oil is making significant investments in natural gas infrastructures and marketing in line with the country’s changing energy mix,” the company said.
“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-million metric tonnes per annum LNG import terminal at Kamarajar port near Chennai, scheduled for commissioning in 2018-19,” Sanjiv Singh, chairman of Indian Oil, said in the statement.
The board of Indian Oil has also approved capacity expansion of its Gujarat refinery from 13.7 million tonnes to 18 million tonnes per annum at an estimated cost of Rs 15,034 crore. The expansion would help meet the growing demand for products in the region, the company said.
