The ongoing tussle for ADB’s 5.2% stake in Petronet LNG Limited just got a direction with India offering Qatar the stake, according to Businesstoday.

This follows the earlier letter sent by Qatar’s Minister of Energy & Industry Mohammed bin Saleh Al-Sada to M Veerappa Moily confirming the preliminary evaluatory talks between Qatar Petroleum International (QPI) and Petronet and an intention to fast-track the deal.

State owned firms – IOC, BPCL, GAIL India and ONGC, the current promoters having 50% stake (with each having 12.50%) were also planning to acquire ADB’s stake. These holding entities have a right of first refusal.

Gaz de France International (GDFI) holds a 10% in Petronet and also has the right of first refusal over ADB's stake but the French energy firm had decided to waive this right off.

But the Oil Ministry did not allow such a move as that would have turned Petronet into a PSU. Post that decision all retracted from buying except Gail, which still was gunning for the stake.

If the ADB stake goes to state firms, Petronet would come under scrutiny of official auditor CAG and Central Vigilance Commission (CVC) because of PSU holding exceeding 50%, something the company and the Ministry were opposed to, as stated by BT.

Qatar currently sells 7.5 Mn tonnes of LNG to Petronet on a long-term contract.

ADB had earlier planned to sell its stake in 2008 but also during that time CEO Prosad Dasgupta was in favour of Chevron or Lakshmi Mittal group buying the stake rather than the state owned oil giants.

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