Two yrs on, Indian Oil, GAIL still considering Adani LNG terminal investment

Due-diligence studies causing delay?

"GAIL and Indian Oil Corp are jointly carrying out techno-commercial and legal due-diligence studies," GAIL said in a response to a query on the status of planned investments in the LNG terminal. State-run refiner Indian Oil also said it was carrying out due diligence in the matter. An Adani Group spokesperson said that orders placed for the construction of the LNG terminal are on track. The Adani Group has joined with French energy giant Total to invest in the LNG terminal. "The companies will jointly develop various regasification LNG terminals, including Dhamra LNG, on the East coast of India," the two companies said in a statement in October 2018. The Adani Group didn't offer an update on Total's investment plans for Dhamra LNG terminal.

The 2016 pact

IOC and gas transporter GAIL were to hold 39 percent and 11 percent equity stakes, respectively, in the LNG terminal, as per the 2016 pact. The Adani Group was to hold the remaining 50 percent. Presently, India is the world's third-biggest consumer of oil.