Private sector energy firm Petronet LNG is all set to join the public sector ranks. Petronet LNG was conceived as the nodal agency to import liquefied natural gas into India. The "private" character of the company provided Petronet the freedom to negotiate spot LNG prices in the international market. But now Petronet LNG is set to enter the "public sector" category.
According to sources, the government has said that Petronet LNG should go ahead and change its Memorandum and Articles of Association, which will allow the four existing PSU stake holders in Petronet LNG to hike their stake beyond 50 per cent.
All PSU stake holders have agreed to buy Asian Development Bank's (ADB) stake in Petronet LNG. Accordingly, Indian Oil Corporation (IOC), BPCL, Oil and Natural Gas Corporation (ONGC) and Gas Authority of India Limited (GAIL) are likely to equally acquire ADB’s 5.2 per cent in Petronet LNG, sources said. Currently, the four firms hold 12.5 per cent each in Petronet LNG.
A 2010 amendment in Petronet Memorandum & Articles capped direct & indirect government holding at 50 per cent. Petronet LNG will become PSU once cumulative stake of PSUs crosses 50 per cent.
ADB had offered to sell its 5.2 per cent stake in Petronet LNG on Aug 23, 2011. ADB had offered lower of the following two options for fixing the stake sale price.
Option 1 - Average weekly closing price for 6 months
Option 2 - Average weekly closing for 2 weeks preceding date of purchase
Speaking to NDTV, officials of Petronet said that the company's board has not discussed ADB stake sale but ADB has offered its stake to PSU promoters of Petronet LNG.
Petronet set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat, and is in the process of building another terminal at Kochi, Kerala.
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