Malaysia's Isomeric Holdings to Have Controlling Stake in Floating LNG Facility on India's East Coast

Malaysia’s Isomeric Holdings Sdn Bhd will be the controlling shareholder in a RM2.1 billion ($0.5 billion) regasification and floating storage terminal project to be built in Krishnapatnam Port, Andhra Pradesh, India.

The Star, a Malaysian daily, on Tuesday reported the project would be developed by a special-purpose vehicle (SPV), Petrogas Pvt Ltd, a partnership between the Malaysian consortium (74 percent) and Andhra Pradesh-based LEPL Renergy Pvt Ltd (26 percent).

Isomeric Holdings will invest about RM1.55 billion in the project.

First phase of construction will commence around February and March next year. The project is expected to be complete in 24 months.

Malaysian state owned firm Petronas should be given priority to supply LNG to the terminal, Malaysia’s Special Envoy to India and South Asia for Infrastructure Datuk Seri S. Samy Vellu told the media, The Star reported

He said he had asked the Malaysian consortium to give priority or first right of refusal to Petronas.

“The project is seen as a golden opportunity for Petronas to increase its market share in the supply of LNG in India,” The Star quoted the envoy as saying. He further added that many suppliers like Gazprom, Qatar Gas and Singapore LNG had shown keen interest in supplying LNG to the project.