In an attempt to achieve the targeted capacity addition, Gujarat State Petroleum Corp (GSPC) and Adani Group will jointly invest a staggering sum worth Rs 4,500cr in building LNG import terminal at Mundra SEZ in Gujarat as the move has been aimed at cutting cost by Rs 700-800cr. The GSPC, which is a unit of Gujarat government-owned GSPC, recently secured approval to become a co-developer of the multi- product special economic zone (SEZ) being set up by Adani Ports at Mundra. In this connection, the Commerce Ministry's Board of Approvals (BoA) gave nod to GSPC LNG's proposal to 5 million tons a year as the LNG terminal together with storage and re-gasification facilities over an area of 28 hectares. After getting permission as a co-developer, the project will now be entitled to duty-free imports which will help cut costs from the previous estimate of Rs 5,200cr, said official sources.
They said adding that once they avail duty free imports, the developers are required to sell a threshold of the produce to units within a SEZ and that the GSPC-Adani combine plan to see 3.8 million tons per annum of LNG to units in nearby Dahej SEZ and also from the one coming up in Mangalore. They are currently negotiating with state-owned Oil and Natural Gas Corp (ONGC) to sell 1.1 million tons of LNG to its petrochemical unit coming up in Dahej SEZ and another 1.3 million tons to ONGC's petrochem plant in the Mangalore SEZ. Apart from this, they are also keen to sell another 1.4 million tons to Torrent Energy Ltd's power plant in Dahej SEZ for which they have already secured environment clearance and will now proceed to finalize a joint venture partner. In a related development, India Gas Solutions Pvt Ltd - the equal joint venture between the Mukesh Ambani-led RIL and Europe's second largest oil firm BP, ONGC and Indian Oil Corp (IOC) have been shortlisted to pick up 25% stake in the project.