IndianOil and Gail Take Stake in Adani LNG Terminal

IndianOil annual general meeting held in September this year.

By MarEx 2016-09-20 20:03:38

India's biggest refiner IndianOil and gas transporter Gail (India) are set to take a stake in a LNG terminal being built in the eastern state of Odisha.

The two companies will sign an agreement on Wednesday with coal trader Adani Enterprises, which will be building the five million ton LNG regasification terminal, Indian Oil said in a statement on Tuesday.

The statement did not specify what stake IndianOil and Gail would be taking though company officials have previously indicated that they might buy 49 percent of the terminal.

Factories and vehicles are expected to need more and more natural gas in coming years and IndianOil has been aggressively booking capacities in LNG terminals across the country.

The company, which is setting up its own five million ton terminal in the east coast, wants its gas trading business to contribute 15 percent of revenues by 2021.

Speaking at the company’s annual general meeting this month, IndianOil Chairman B Ashok highlighted that Indian Oil is planning to add about 24 million tons per annum refining capacity through brownfield expansions in the next five to six years.

Hydrocarbons are likely to remain the most important source of energy for decades to come, and India is currently the fourth largest consumer of petroleum products in the world in spite of a very low per capita consumption, said Ajay Sawhney, Additional Secretary, Ministry of Petroluem and Natural Gas earlier this month.