IOC to Acquire 50% Stake in Mundra Terminal

According to the Press Trust of India, GSPL LNG is a joint venture of Gujarat State Petroleum Corp and Adani Enterprises. Adani and GSPC are equal partners in GSPL LNG. 

 

The board of India’s largest oil firm gave “in-principle approval for acquiring up to 50% equity in GSPL LNG Ltd, which is setting up a 5 million tons per annum LNG terminal at Mundra Port in Gujarat”, the company said in a statement.  GSPL LNG Ltd will hold the remaining 50% stake in the LNG terminal that is nearing completion. 

 

IOC did not specify the deal value. But, considering that typically 30% of the cost of infrastructure projects are financed by equity and the rest by debt, the acquisition of up to a 50% stake in the INR 5,040 crore (USD 790 million) LNG terminal could cost the refiner at least INR 756 crore (USD 118 million) (half the equity portion of the cost).