Engie to sell 10% of Petronet LNG

Engie to sell 10% of Petronet LNG

France’s Engie is planning to sell its entire 10% stake in Petronet LNG, India’s largest importer of LNG. GDF International, an Engie unit, has written to the four Indian state companies that together own half of Petronet LNG to offer shares in proportion to their holdings, Petronet said.

Explorer Oil & Natural Gas Corp. (ONGC), refiners Bharat Petroleum and Indian Oil Corp. (IOC), and gas distributor GAIL (India) form the founding group, each with a 12.5% stake.

In a separate filing, Engie said that it considered its stake “mainly a financial participation” and retained a “strong belief in PLL’s [Petronet’s] long-term growth potential.” Engie invested in Petronet in 2001.

In a statement to LNG World Shipping, Engie pledged to continue to work with Petronet on LNG projects “of mutual interest”, including LNG bunker-supply projects, LNG supply and small-scale ventures.

R Garg, finance director of Petronet LNG, said it was mandatory for GDF to offer its holding to other founders as per the shareholders’ agreement.
“If the other founders don’t buy, GDF can sell it to anyone it wishes,” he added.

AK Srinivasan, director of finance at ONGC, said the founders might not snap up the stake.

“It is not necessary for us to buy,” he said. “The structure has to be maintained, otherwise government approval is required.”

“I’m not sure they can sell a 10% stake easily in the market,” said Sabri Hazarika, a Mumbai-based analyst at Phillipcapital India.

“Some other strategic investors can come in, like companies from Qatar or the UAE.”

Petronet handles around 80% of India’s LNG imports and is the world’s fourth largest importer of LNG.  Read more

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Credits: youroilandgasnews.com

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