GSPC-Adani Group JV to invest Rs4,000 crore in Mundra LNG terminal

Gujarat State Petroleum Corporation Ltd (GSPC) and the Adani Group will jointly invest Rs4,000 crore to develop an LNG import terminal at Mundra, alongside Adani Group's port and SEZ.

The 50:50 joint has received the state government's approval and the LNG terminal, the third in the state after Dahej and Hazira, is expected to be ready in the next three years.

The terminal will have an initial capacity to import five million tonnes per annum of LNG and the two partners hope to start work on the much-delayed project soon.

The project will have a debt-equity ratio of 70:30, sources said.

The LNG project was originally proposed as a tripartite project with 33 per cent stake each for GSPC, Essar Group and the Adanis.

The Adanis had signed an MoU with the state government during the Vibrant Gujarat event in 2007.