Indian Oil Corporation Limited and GAIL (India) Limited have signed an MoU with Dhamra LNG Terminal Private Limited (DLTPL) for taking equity in the 5 MMTPA capacity LNG receiving, storage and regasification terminal, being put up at Dhamra Port, Odisha.
The agreement was signed in New Delhi in the presence of Minister of State (I/C) for Petroleum and Natural Gas Dharmendra Pradhan.
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 would acquire 39% and 11% equity respectively in DLTPL, with the balance 50% being held by the Adani group.
Going forward, Indian Oil and the Adani group will each divest 1% of their respective stake to a credible financial institution which will then have 2% 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.
According to reports, the LNG terminal would 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. The natural gas from the terminal would also be supplied to various City Gas Distribution networks coming up in eastern India, which in turn would cater to the requirements of piped gas for households, CNG for automobiles and clean fuel requirements of commercial establishments and industries. It is, therefore, expected that once operational, Dhamra LNG terminal will emerge as a bridge to prosperity for the entire eastern India.