Asian Development Bank (ADB), which is in the process of offloading its 5.2 per cent shareholding in Petronet LNG is set to get a buyer as Indraprastha Gas is interested in picking up the stake.
Although Petronet’s promoter companies IOC, ONGC, GAIL and BPCL were originally interested in buying the stake, they could not do so because of opposition from the management of the Petronet.
The firm’s management opposed it as it would have led to PSU holding crossing 50 per cent that would turn the LNG importer into a government entity. Petronet LNG is the nation’s largest liquefied natural gas importer.
IGL management is considering picking up ADB’s stake which has been on offer for more than a year now. IGL being a private company, its buying ADB stake will not alter Petronet’s character, thereby satisfying the company management and the oil ministry, reports suggest.
For the promoters too it will be a win-win situation as they will get a larger say in Petronet’s affairs through IGL. IGL is 50 per cent owned by gas utility GAIL India and Bharat Petroleum Corp (BPCL).
IGL buying stake would also help in averting the potential conflict situation that was arising due to Petronet management offering the ADB stake to Qatar Petroleum, reports indicate.
Qatar Petroleum, the Persian Gulf country’s state-run energy firm, has majority stakes in RasGas and QatarGas that along with other liquefied natural gas (LNG) suppliers in the world compete to sell fuel to India.
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