Manila, Jan 14: The Asian Development Bank (ADB) said today it would make an equity investment and partial credit guarantee totaling USD 75 million in a project to develop India's first liquefied natural gas terminal.

Petronet LNG Ltd. is developing the five million tonne per annum terminal at Dahej in Gujarat.
An ADB statement said the Philippines-based lender would subscribe up to a 5.2 per cent stake in Petronet, while the credit guarantee will support a Petronet bond issue of up to 148.9 million dollars.
"The project is designed to promote economic growth by meeting the growing energy demands of north and west India and providing lower cost and cleaner fuel for the oil, power, transport and fertilizer sectors," said ADB project finance specialist Kurumi Fukaya.
"As a public-private partnership, it should provide a model for good practice in energy infrastructure development. It is a step towards the full liberalisation of the energy sector."
The Petronet project is the ADB's first long-term credit guarantee to be provided through its private sector operations.
Bureau Report