BG Group is planning to acquire equity in one of the existing or planned LNG import terminals on India’s west coast as the company looks to sell greater volumes to the nation. The UK-based gas giant is understood to have its eye on a stake in Adani Group’s proposed Mundra terminal in Gujurat.An alternative would be to acquire an interest in either Petronet LNG’s Dahej facility or Shell’s Hazira terminal. Both these projects are also in Gujarat. The upcoming Dabhol import facility in Maharashtra is also on the cards.“We are looking at regasification positions, either in terms of equity or capacity reservations in LNG terminals,” said BG India managing director Shaleen Sharma. Talks are at an initial stage and no deal has yet been decided, he added. Petronet is said to be amenable to leasing out part of the incremental capacity at Dahej, where the operating consortium is boosting throughput from 10 million tonnes per annum to 15 million tpa.There will also likely be spare capacity at Hazira where Shell and partner Total are boosting volumes from 3.6 million to 5 million tpa. Another project on BG Group’s longer-term radar could be the proposed import facility near the Maharashtra state capital Mumbai being touted by Indian company Hiranandani. A local source said that Swan Energy also has tentative plans for a potential floating regasification project at Pipavav in Gujarat. “We want access to terminals to expand our LNG business in India,” said Sharma, adding that the company is only interested in investing in facilities on the west coast because of the existing gas pipeline infrastructure. BG Group, which has supplied more than 30 spot cargoes of LNG to India in the past 30 months, is also negotiating to sell 2.5 million tpa to Gujarat State Petroleum Corporation under a long-term contract.
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BG chases toehold in India
Gas giant seeks equity stake in west coast region as base for sales boost.
28 September 2012 12:17 GMT
Updated
28 September 2012 12:17 GMT
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