ADB to pick up 5% stake in Petronet LNG

The Asian Development Bank will invest $75 million in Petronet LNG Ltd for taking 5.2 per cent equity stake even as ExxonMobil-promoted RasGas of Qatar desired to pick 10 per cent stake in India's first liquefied natural gas importer.

"The board of ADB on January 13 cleared investment of $75 million through an equity investment and partial credit guarantee," PLL director (finance) P Dasgupta told PTI in New Delhi.

Besides taking 5.2 per cent share in PLL, the company that is developing the $574 dollar LNG import and regassification terminal at Dahej in Gujarat, the Manila-based ADB will support PLL's bond issue of upto Rs 700 crore (Rs 7 billion) [equivalent to $148.9 million] without a government counter-guarantee.

Meanwhile, Jerry J Wolahan, managing director of RasGas Co Ltd, the LNG supplier to PLL, said: "We have the option to buy 10 per cent equity in PLL. Its our willingness to go with the option."

He did not elaborate on the investment RasGas will make in PLL saying discussions were on to decide the premium.

PLL has state-owned Gail, ONGC, BPCL and IOC with 12.5 per cent stake each while Gaz de France has 10 per cent. PLL is coming out with an initial public offering for the remaining 34.8 per cent. In case PLL and RasGas reach an agreement on premium, the Qatari firm will be accommodated by way of expanding equity or the four promoters taking proportionate cuts.