Reliance Power, Shell In Talks To Set Up LNG Terminal

03 January, 2012

Uility Reliance Power, controlled by billionaire Anil Ambani, is in talks with energy major Royal Dutch Shell to jointly set up a liquefied natural gas LNG.L terminal to secure supplies for its gas-fired power plant, a person with direct knowledge of the matter said.

Earlier on Tuesday, The Economic Times reported the two companies were in talks to jointly set up an LNG terminal.

“Reliance Power keeps exploring various business opportunities. The company would not like to comment on specific business proposal,” the utility said in an e-mail response to Reuters.

A Shell India spokeswoman did not respond to phone calls seeking comment.

Reliance Power is in talks with Shell to form a joint venture in which the two companies will hold equal stake and Kakinada port in the southern Andhra Pradesh state will own a minority stake, the source with knowledge of the matter said.

The proposed venture will likely invest Rs 30 billion to set up an LNG terminal at Kakinada on India’s east coast and would import and supply gas initially to Reliance Power’s 2400-megawatt, gas-fired plant in Andhra Pradesh, slated to come onstream in 2012, the source said.

India’s gas-based power plants are facing uncertainty over fuel supply as gas output from the D6 block operated by Reliance Industries, off India’s east coast, has declined, forcing power producers to look for other substitutes.


Leave Your Comment
News Roundup: Bharti Airtel plans to raise $1B via Euro bonds

News Roundup: Bharti Airtel plans to raise $1B via Euro bonds

TEAM VCC 1 year ago
Bharti Airtel is looking to raise up to $1 billion (Rs 6,225 crore) by selling bonds mainly to European investors as India’s largest telco seeks...
News Roundup: RIL, ONGC, GAIL bid for US LNG hubs

News Roundup: RIL, ONGC, GAIL bid for US LNG hubs

TEAM VCC 1 year ago
RIL, ONGC, GAIL Bid For US LNG Hubs –  Reliance Industries (RIL), Oil and Natural Gas Corporation (ONGC) and GAIL want to buy shares in...
News Roundup: IDBI Bank plans to raise up to $300 million to boost Tier-I capital

News Roundup: IDBI Bank plans to raise up to $300 million to boost Tier-I capital

TEAM VCC 3 years ago
With its tier-I capital adequacy ratio slipping below eight per cent, IDBI Bank plans to raise up to Rs 1,860 crore ($300 million) through Basel-III-compliant bonds by...
No Comments

Reliance Power, Shell In Talks To Set Up LNG Terminal

Powered by WordPress.com VIP