BP Amoco and Petronas to Hold Major Stake in Kakinada LNG Project
BP Amoco and Petronas are expected to hold a 29% stake each in the Kakinada LNG project, valued at Rs 61 billion (US$1.35 billion), marking a significant investment in the Indian energy sector. The project, a joint venture between BP Amoco, Petronas, and Indian Oil Corp, aims to generate power at a cost of Rs 2.5 per unit, which is competitive in the market. The consortium, Kakinada Indian Oil LNG Consortium (KIOLC), has also decided to move the landfall point 400-km away from Kakinada to Krishnapatnam in Nellore district, where Reliance Industries will transport natural gas from the D6 field in the Bay of Bengal.
Key Takeaways:
- BP Amoco and Petronas will hold a 29% stake each in the Kakinada LNG project, totaling 58% of the consortium's shareholding.
- Indian Oil Corp (IOC) will hold a 32% stake in the project, while Singapore-based International Sea Ports (ISPL) will retain 10% of the consortium's shares.
- The project's pricing structure anticipates generating power at Rs 2.5 per unit, a competitive rate in the market.
- The consortium is in talks with the Andhra Pradesh Electricity Board to secure off-take agreements for power generation.
- The Kakinada LNG project will utilize natural gas from the D6 field in the Bay of Bengal, which will be transported by Reliance Industries.
- The project's landfall point has been moved 400-km away from Kakinada to Krishnapatnam in Nellore district, Andhra Pradesh.
Statistics:
- Rs 61 billion (US$1.35 billion) - the total project value investment.
- 29% - the stake held by BP Amoco and Petronas in the Kakinada LNG project.
- 32% - the stake held by Indian Oil Corp (IOC) in the project.
- 10% - the stake held by International Sea Ports (ISPL) in the consortium's shares.
- Rs 2.5 per unit - the anticipated cost of power generation in the project.
- 400-km - the distance between the original and new landfall points of the Kakinada LNG project.
Sources:
- Asia Pulse, March 2, 2003.
- (PTI), 02-03 1006.