ADB, RasGas pick up 10% stake each in Petronet LNG

The Manila-based Asian Development Bank and Qatar-based Ras Laffan Liquefied Natural Gas Co. Ltd. (RasGas), held by ExxonMobil Corp, and Qatar Petroleum, have each taken 10% equity in the Indian government-owned Petronet LNG.

Oct. 23, 2003

By Shirish Nadkarni
OGJ Correspondent

MUMBAI, Oct. 23 -- The Manila-based Asian Development Bank and Qatar-based Ras Laffan Liquefied Natural Gas Co. Ltd. (RasGas), held by ExxonMobil Corp, and Qatar Petroleum, have each taken 10% equity in the Indian government-owned Petronet LNG.

With these investments, 80% of the equity has been tied up in Petronet, which will begin importing LNG in January 2004.

Indian Oil Corp. (IOC), Bharat Petroleum Corp. (BPCL), Oil & Natural Gas Corp., and Gas Authority of India Ltd. (GAIL) have each taken 12.5% equity, while project consultant Gaz de France holds a 10% stake.

Company sources revealed that an initial public offering for the remaining 20% would be floated in January 2004. In all, 160 million shares with a face value of 10 rupees each would be offered at a premium via the book-building route. The prospectus would be floated by yearend.

Meanwhile, a team of RasGas senior officials is to visit India in late October to renegotiate the price at which the Qatar firm will sell LNG to Petronet. GAIL, IOC, and BPCL are to sign the offtake agreement with Petronet at the same time.