New Delhi, Aug 5 (IANS): State-run marketing firm Indian Oil Corp (IOC) on Friday said its board has approved the acquisition of up to 50 per cent equity in GSPL LNG Ltd, which is setting up a 5-million tonnes per annum (MTPA) liquefied natural gas (LNG) terminal at Mundra Port in Gujarat.

At its meeting here on Thursday, the "Indian Oil Board has given its in-principle approval for acquiring up to 50 per cent equity in GSPL LNG Ltd, which is setting up a 5-MTPA LNG terminal at Mundra Port," an IOC release said.

GSPL LNG is a joint venture of state-run Gujarat State Petroleum Corp (GSPC) and private conglomerate Adani Enterprises Ltd.

The estimated cost of the Mundra LNG terminal is Rs 5,040 crore.

IOC said the LNG terminal, to be commissioned in the fourth quarter of the current fiscal, will have receipt, storage and re-gasification facilities for LNG and will be connected to the existing pipelines network of Gujarat State Petronet Ltd at Anjaar.

"We already have investments across the gas value chain, from LNG import terminals to city gas distribution networks, the major among them being a 5-MTPA LNG import terminal at Kamarajar Port near Chennai, scheduled for commissioning in 2018-19," IOC Chairman Sanjiv Singh said in the statement.

IOC said the board also approved capacity expansion of its Gujarat refinery to 18 MTPA at the cost of Rs 15,034 crore. The plant's current refining capacity is 13.7 MTPA.

Indian Oil plans to raise the combined capacity of its 11 group refineries to 100 MTPA in the next five years, from the current 80.7 MTPA through brownfield expansions, the statement added.