IOCL To Acquire Up To 50% Stake In GSPL LNG From GPSC For Approximately US$117.8 Million

Published: Aug 04 2017
Deal Summary

Indian Oil Corporation Ltd. (IOCL), an oil and gas company, agreed to acquire up to a 50% stake in GSPL LNG Ltd., a company engaged in the setting up a Mundra LNG import terminal located in Gujarat, India, from Gujarat State Petroleum Corp. (GPSC), an oil and gas company, for a purchase consideration of approximately INR7,500 million (MM) (US$117.73 MM).

The Mundra LNG terminal is under construction and is expected to have capacity of 5 million tonnes per year of LNG. The total estimated cost of the terminal is approximately INR50,400 million (MM) (US$791 MM).The terminal is expected to be commissioned in the fourth quarter of 2017-18.

GSPL LNG is a joint venture of Gujarat State Petroleum Corporation (GSPC) and Adani Enterprises Ltd. (AEL).

The transaction will enable IOCL to strengthen its midstream business in Gujarat, India.

Sanjiv Singh, chairman of IOCL, said, “We already have investments across the gas value chain, from LNG import terminals to city gas distribution networks, the major among them being a 5-MMTPA LNG import terminal at Kamarajar port near Chennai, scheduled for commissioning in 2018-19.”

Deal history

Announced: On August 4, 2017, IOCL agreed to acquire up to a 50% stake in GSPL LNG for a purchase consideration of approximately INR7,500 MM (US$117.73 MM).

Planned: On December 11, 2016, IOCL intends to acquire a 26% stake in Mundra LNG from GPSC.

Rumor: On July 24, 2016, GPSC intends to sell its 50% stake in Mundra LNG, to IOCL, according to source familiar with the matter said.

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