The Hindu Business Line : Gujarat State Petroleum gets second LNG cargo

IPO plans
GSPC is expected to hit the capital market this financial year to garner around Rs 5,000 crore through an IPO to develop its hydrocarbon fields in the Krishna-Godavari Basin’s Deendayal gas field (D-6)

Our Bureau

Gandhinagar, Sept. 29 The second liquefied natural gas (LNG) cargo imported via spot market by State-owned Gujarat State Petroleum Corporation Ltd (GSPC) arrived on Monday at Petronet LNG Ltd’s terminal at Dahej in Bharuch district of Gujarat.

This is part of GSPC’s business strategy to actively enter the LNG trading business by importing a cargo every month and establishing it as a fast revenue earner before its own terminal at Mundra — which has an initial capacity to import 6.5 million tonnes per annum of gas (scalable up to 20 mtpa) — commences operation in 2012-13. GSPC (50 per cent) and the Adanis (25 per cent) are partners in this terminal and are looking for other strategic partners to pick up the balance equity. The terminal is being developed with an investment of Rs 3,500 crore and will have two storage tanks and a jetty.

Currently, GSPC is the only ‘non-terminal owner’ gas company in the country to have independently purchased two LNG cargoes recently, receiving them both at Dahej. “This is another step by GSPC towards building on its LNG trading business and achieving its ambition to develop its own LNG terminal,” Mr D.J. Pandian, Managing Director.

Public offer

GSPC is expected to hit the capital market this financial year to garner around Rs 5,000 crore through an IPO to develop its hydrocarbon fields in the Krishna-Godavari Basin’s Deendayal gas field (D-6), from where gas would be evacuated through a Reliance Industries’ pipeline between Andhra Pradesh and Gujarat.

Across Gujarat

Gas from the cargo, received at Petronet LNG Ltd’s RLNG receiving and regassification terminal at Dahej, would be sold to meet the burgeoning demand of gas from various industrial and power sector customers across Gujarat. The 1,420-km long pipeline of Gujarat State Petronet Ltd (GSPL), a subsidiary of GSPC, would ensure gas flow across Gujarat. GSPL is developing a total of 2,200-km long pipeline across the State.

The price of the gas purchased could not be known immediately as it has been kept “confidential”, according to an official, although there were speculations that the cargo may have cost around Rs 80 crore.

GSPC has sourced this second cargo from Qatar; it was delivered on the ship ‘Lusail’. In June-July, GSPC had purchased its first LNG cargo delivered by North West Shelf (NWS), Australia, through a competitive bid process. It now plans to bring in one cargo every month.

GSPC has started supplying gas to various customers, including the power sector, through GSPL network in Gujarat.

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