IOCL, GAIL sign MoU for taking equity stake in Dhamra LNG terminal
Indian Oil and GAIL will acquire 39 percent and 11 percent equity respectively in DLTPL, with the balance 50 percent stake being held by Adani group.
Indian Oil Corporation Limited (IOCL) and GAIL (India) Limited on 21 September 2016 signed a Memorandum of Understanding (MoU) with Dhamra LNG Terminal Private Limited (DLTPL) for taking equity in the 5 MMTPA capacity LNG Receiving, Storage and Regasification Terminal.
The Dhamra LNG terminal is being built by Adani Enterprises Ltd at Dhamra Port, Odisha.
Highlights of the MoU
• As per the MoU, DLTPL shall be an equal Joint Venture of Indian Oil and GAIL on one hand and Adani Group on the other.
• Indian Oil and GAIL will acquire 39 percent and 11 percent equity respectively in DLTPL, with the balance 50 percent stake being held by Adani group.
• Indian Oil and Adani group will each divest 1 percent of their respective stake to a credible financial institution which will then have 2 percent stake in the terminal.
• Apart from equity, Indian Oil and GAIL intend to book regasification capacity of 3.0 and 1.5 MMTPA respectively in the terminal.
• Presently, the states in eastern India viz. Odisha, Bihar, Jharkhand and West Bengal are not able to get the benefits of natural gas in sectors like Domestic, Transport, Industries etc., as the region does not have gas infrastructure by way of LNG Terminals and cross-country gas pipeline grid.
• The LNG Terminal at Dhamra Port will provide the potential customers in these states a clean and economically viable alternative which will also help in reducing the carbon footprint.
• This will also provide momentum to the economic growth of this region by attracting new industrial projects.
• The LNG Terminal will also meet the gas requirements of three oil refineries of Indian Oil situated in Barauni, Haldia and Paradip.
• The three fertilizers plants at Barauni, Sindri and Gorakhpur which are being revived by Govt. of India will also benefit from this terminal.
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