Infrastructure major GMR has agreed to sell 30% stake in GMR Energy (Singapore) Pte Ltd to Petronas International Corporation, a wholly owned subsidiary of Malaysian giant Petroleum Nasional Berhard or Petronas.
The value of the deal was not disclosed.
GMR Energy is developing an 800 mw combined cycle gas turbine power plant on Jurong Island in Singapore costing about Singapore $1billion (Rs3,791 crore).
The financial package for the project includes a term loan facility of about S$670 million (Rs2,540 crore) and a credit and working capital facility of about S$270 million (Rs1,025 crore) for a tenor of about 17 years.
Fuelled by re-gassified LNG, the plant is scheduled for commercial operations in 2013.GMR Supply Singapore, a subsidiary, will distribute power since it has a licence to retail electricity in Singapore.
Petronas said its alliance with GMR would pave the way for other opportunities too, both in India and abroad.
Grandhi Mallikarjuna Rao, group chairman, said, “This relationship between GMR and Petronas opens up powerful synergy going forward for both. It is symbolic of true South-South co-operation and has immense potential in the energy market in the region.”
Anuar Ahmad, executive vice-president, gas and power business of Petronas, said, “This acquisition marks Petronas Group’s maiden foray into the international power market, and is a major step in its effort to extend presence further along the energy value chain.”
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