SCI takes 20 p.c. stake in Greenfield Holding

By Our Staff Correspondent

MUMBAI, FEB. 3.Shipping Corporation of India (SCI) has become the 20 per cent equity holder in the Greenfield Holding Company Ltd. (GHCL).

GHCL is a joint venture amongst Mitsui O. S. K. Lines (MOL), Enron and SCI with the equity being distributed in the ratios of 60:20:20 among the three partners. This holding company in Cayman Islands will own `LNG Laxmi', a 1.35 lakh CBM LNG tanker through its subsidiary Greenfield Shipping Company Ltd. (GSCL) registered in Malta. This Maltese flag LNG carrier will be the first LNG tanker to come to the Indian shores in 2001 and will be carrying two million tonnes of LNG per annum to Dabhol for Dabhol Power Company (DPC) - an Enron promoted venture, from Abu Dhabi and Oman. DPC has already concluded a 20 year time charter arrangement with GSCL.

In addition to being an equity partner in this venture, SCI will also be involved in supervision of construction of the LNG vessel presently in progress in MHI Yard in Japan, as well as in manning and management of the tanker along with MOL - the world's largest LNG operator. The association with MOL will help SCI to gain experience and this venture is considered to be a launching pad for SCI to embark upon various other LNG projects coming up in the country.

LNG Laxmi is expected to be delivered to GSCL by September 2001 and is expected to carry the first consignment into India by October 2001. Since the next project in India is not likely to materialise before mid/end 2003, by the time any such project actually requires an import, SCI would have already gained hands on experience of handling LNG for about two years.

This $200 million deal, finalised with a consortium of 11 financiers led by ANZ, was one of the first of its kind involving full project financing. It is expected that the deal will make it easier for the future LNG shipping ventures in the country in terms of financing particularly since the country's credit rating and international sentiment concerning India have significantly improved since then.

The first draw down by the GHCL on its lenders was achieved on February 1.

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