Energy Sector - 2

[Naresh]

[center]<b><span style='font-size:17pt;line-height:100%'>GSPC plans 2 LNG terminals, may spend $1.1bn</span></b>[/center]

<b>Gujarat State Petroleum Corporation (GSPC) is <span style='font-size:12pt;line-height:100%'>planning to set up two liquefied natural gas (LNG) terminals in Gujarat with an investment of $1.1 billion.

GSPC has signed an initial pact with Adani Energy, a Adani Group unit, for setting up a five million tonne per annum import and regassification terminal at Mundra port.

It has also signed a memorandum of understanding with Essar Energy, a unit of Mumbai-based Essar Group, for a similar facility at Pipavav.</span></b>

Company officials said the agreements were only a statement of intent for going ahead with the project, and project structure and equity pattern will be finalised soon.

"We need to do a detailed feasibility for the two projects before arriving at final investment numbers," an official said. "We also have to look for a gas source before proceeding with the projects."

<b>Gujarat already has Petronet LNG's five million tonne per annum LNG receipt facility at Dahej, and Shell's 2.5 million tonne per annum terminal at Hazira.</b>

GSPC has signed a deal with Petronet for the construction of two additional storage tanks at the Dahej facility for $300 million.

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