GMR to sell 30% stake in Singapore subsidiary to Petronas

GMR Infrastructure today said it would sell 30% stake in its Singapore-based subsidiary GMR Energy to Malaysian oil and gas major Petronas for an undisclosed amount.

The stake in GMR Energy (Singapore) Pte Ltd would be sold to Petronas International Corp Ltd, a wholly-owned subsidiary of Petronas.However, the financial details were not disclosed.

GMR Energy is developing an 800 MW Combined Cycle Gas Turbine power plant on Jurong island in Singapore, GMR Infrastructure said in a statement. The power generating facility is being constructed by a consortium of Siemens and Samsung.

"This relationship between GMR and Petronas opens up powerful synergy going forward for both the groups. It is symbolic of true South-South co-operation and its immense potential in the energy market in the region," GMR Group Chairman G M Rao said. Fuelled by re-gassified LNG, the power plant is scheduled for commercial operations in 2013, it added.

"This acquisition marks Petronas group's maiden foray into the international power market and is a major step in its effort to extend its existing integrated presence further along the energy value chain," Petronas' Executive Vice President Datuk Anuar Ahmad (Gas and Power Business) said.

GMR Supply Singapore Pte Ltd, a wholly-owned subsidiary of GMR Energy, that holds an electricity retail license in Singapore would manage the electricity retail business. Bangalore-headquartered GMR group has diverse interests including in energy, airports and urban infrastructure.