RIL & BP in talks to install floating LNG terminal: Sources

Big boy Reliance Industries may be talking to British Petroleum (BP) for installing a floating LNG terminal with a capacity of over three million tonne per annum (mtpa). This could entail an investment of USD 500 million, reports CNBC-TV18's Nayantara Rai quoting sources.

They also add that RIL is looking to install the floating LNG terminal at either Kakinada or at Jamnagar as both these locations have their own merits. RIL has a huge refining complex at Jamnagar and at Kakinada, the company has its share in the KG-D6 basin. In February, the two companies had entered into a 50:50 joint venture for sourcing and marketing of gas. This was besides the 30% participatory interest that BP was getting in 23 oil and gas blocks of Reliance Industries. (Here is more). Clearing the last hurdle, the Home Ministry, on June 15, had given unconditional approval for BP to buy a 30% stake in Reliance Industries ' oil and gas blocks, including the showcase KG-D6 gas fields, for USD 7.2 billion. The Ministry of Home Affairs wrote a one-page letter to the Petroleum Ministry on June 1 giving security clearance and a no-objection certificate for BP buying a 30% stake in 23 oil and gas blocks of Reliance in India's largest foreign direct investment.