Gujarat State Petroleum Corporation (GSPC) has rejected an informal EoI from Hindustan Petroleum Corporation (HPCL) for a 50 per cent stake in the proposed 5-7.5 million tpa LNG terminal at Mundra.

GSPC had previously invited Essar to pick the residual 25 per cent stake in the project, but later on Essar had informally expressed its disinterest in entering the venture at the existing location. This was followed by a proposal from HPCL to enter the joint venture.

GSPC holds 50 per cent controlling stake in the project and the remaining 25 per cent participatory interest will be held by Adani Group, while a a third partner is yet to be identified by the JV. In case of non-availability of a third partner, the joint venture may offer the residual 25 per cent stake to public or financial institutions at a later date.

In Early July 2008, GSPC launched a detailed feasibility study of the project and the proposed report is expected to be ready by 30 September 2008. Negotiations are also in an advanced stage with a few comapnies for LNG supplies.

The LNG terminal is slated to be commissioned in 2012.

Also See:

Adani-Essar-GSPC consortium plans LNG terminal in Mundra (04-Mar-08)