BUSINESS STANDARD, Monday, October 29, 2001
Enron to pull out of LNG shipping venture for Laxmi 

Similar story also appeared in the following publications:

THE TIMES OF INDIA, Monday, October 29, 2001
Enron to exit from LNG 'Laxmi' venture

THE ECONOMIC TIMES, Monday, October 29, 2001
Enron preparing to leave DPC, exits 'Laxmi'

THE FINANCIAL EXPRESS, Monday, October 29, 2001
Enron to exit LNG Laxmi
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THE ECONOMIC TIMES, Monday, October 29, 2001
DPC lenders meet to resolve Enron tangle
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BUSINESS STANDARD, Monday, October 29, 2001
Enron to pull out of LNG shipping venture for Laxmi 

Before the final countdown begins for US energy major Enron's actual exit from Dabhol Power Company (DPC), it has decided to quit the greenfield shipping venture for Laxmi, the liquefied natural gas carrier expected to reach Indian shores on November 15. "Enron's affiliate Atlantic Commercial Inc has expressed a desire to its partners to exit the special purpose vehicle for Laxmi in lieu of its decision to move out of the controversial DPC", shipping industry sources said here today.  

An Enron India spokesperson declined to comment over the development. The Shipping Corporation of India (SCI) has a 20 per cent stake in the $220 million project while Mitsui OSK Lines holds 60 per cent and the balance rests with Atlantic. Earlier, SCI chairman P K Srivastava had said they were confident of taking delivery of the vessel on November 15, despite the ANZ Investment Bank-led consortium's decision not to disburse the last tranche of $55 million. "The 135,000 cubic metre capacity tanker, costing $189 million, is ready for delivery and we are currently in talks with banks and parties involved in this project", sources said. SCI and Mitsui OSK Lines have a time charter for 10 years with DPC to transport LNG from Oman to Dabhol. The consortium of 14 banks has already disbursed $110 million, they added. 

Sources said SCI and OSK Lines have not ruled out alternatives such as deploying the vessel in the spot market due to the approaching winter demand for the liquid fuel and existing shortage of LNG vessels in the international market. "LNG is an emerging fuel in international spot market and the consortium has already initiated exploratory steps. The reserves for winter season would be filled soon and there is lot of demand for such vessels", they said. "The multinational has already diverted its focus more on the futures trading aspects of the fuel. Given the present uncertainties, there is an unwarranted delay in the project, and so the carrier "Laxmi" would be used for chartering the natural gas to other countries from the middle east", they explained. Registered in Malta, Laxmi was expected to carry two million tonne of LNG per annum to Dabhol to fire the power plant. The $800 million LNG terminal, which has a storage capacity of five million tonne of natural gas per year, was equipped to re-gassify the fuel and supply it to DPC while remaining to other bulk users. For LNG supply, DPC has signed a 20 year contract for 2.1 million tonne per year of the fuel with Oman LNG (1.6 million tonne per year) and Abu Dhabi Gas Liquefaction Company (480,000 tonne per year), the sources added. 
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THE ECONOMIC TIMES, Monday, October 29, 2001
DPC lenders meet to resolve Enron tangle

Lenders of Dabhol Power Company will be meet in London early November to resolve the complications that have cropped with the main promoter Enron deciding to sell off its equity stake. The meeting is schedule to take place on November 2 and 3 which will be attented by senior officials from Industrial Development Bank of India, ICICI and State Bank of India. When asked about the progress of negotiations with Tatas and BSES on a possible buyout of Enron's holding in DPC, IDBI chairman P P Vora said, These are on-going negotiations. There can not be any specific reply to it."
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