New Delhi (PTI): A newly formed joint venture of state refiner Indian Oil Corp and Adani Energy may take 50 per cent stake in a Rs 4,000-crore liquefied natural gas (LNG) import terminal planned by Gujarat State Petroleum Corp (GSPC) at Mundra in Gujarat.

GSPC will hold the remaining 50 per cent stake in the terminal that is planned for commissioning in 2012, a company source said.

IOC and Adani Energy earlier this month signed an agreement to set up a 50:50 joint venture company for gas distribution.

The joint venture company, which is likely to take shape by January, will set up city gas distribution projects in Uttar Pradesh, Haryana, Rajasthan, Punjab and Madhya Pradesh for supply of compressed natural gas (CNG) to automobiles and piped natural gas for domestic and industrial use, besides marketing LNG.

GSPCL has already awarded Front End Engineering and Design (FEED) contract for the LNG terminal to Tractabel of Belgium. The FEED is likely to be ready by March-end or early April, based on which the investment decision will be made, sources said.

Mundra would be the third LNG terminal in Gujarat. Petronet LNG Ltd already operates a 6.5 million tonnes a year LNG import facility at Dahej, while a joint venture of Royal Dutch/Shell and Total of France own a 2.5 million tonnes capacity terminal at Hazira.

Sources said the Mundra terminal is being planned with an ultimate capacity of 20 million tonnes, depending on the demand. The capacity may be ramped up to 6.5 million tonnes with minor debottle-necking but future additions would be made if there was demand for imported LNG.