Petronet LNG promoters and Oil Ministry are in dilemma over the stake sale of company by Asian Development Bank (ADB). For this the promoters and Oil Ministry have called a meeting to decide whether state companies should buy the 5.2% holding being sold by ADB. The oil ministry officials including Petroleum Secretary GC Chaturvedi and Petronet LNG's promoters - ONGC, IOC, BPCL and Gail India - plan to debate this issue at a brainstorming session in Lonavla.
State-run firms - ONGC, IOC, BPCL and Gail India together holds 50% stake in Petronet LNG, GDF Suez hold 10%, besides 5.2% held by ADB which is selling the stake and the balance is held by public.
While promoting Petronet LNG, which pioneered imports of liquefied natural gas into India, state-run firms decided to cap their equity stake at 50% so that the former can be operated with the freedom which a private firm enjoys. Petronet's freedom allowed it to negotiate spot LNG prices in the international market. The state-run firms have the right of first refusal are eager to pick up stake in the company which implies that Petronet LNG would become a PSU.
Petronet LNG is one of the leading players in oil and natural gas industry space. It has India’s first and largest LNG supply terminal located at Dahej.