Indian Oil Corp. has taken to Twitter in an unusual move to clarify its involvement in an Adani Group company gas import terminal.
(Bloomberg) — Indian Oil Corp. has taken to Twitter in an unusual move to clarify its involvement in an Adani Group company gas import terminal.
The state-run refiner sent a series of tweets late Wednesday to detail a deal with Adani Ports & Special Economic Zone Ltd. involving a proposed liquefied petroleum gas terminal on the nation’s east coast. Indian Oil said there was no take-or-pay liability or binding agreement in place.
The response followed a tweet from opposition lawmaker Mahua Moitra, who accused Indian Oil of not following a proper tender process for the agreement. Moitra’s tweet linked to a Feb. 13 report from the Economic Times newspaper, which said the refiner would shift “a large chunk” of LPG imports to the Adani facility at Gangavaram port from the adjacent Visakhapatnam port.
The newspaper report also stated Indian Oil would fully underwrite Adani’s LPG terminal. The facility will have the capacity to receive 500,000 tons a year.
An Indian Oil spokeswoman said on Thursday that the agreement with Adani was signed very recently and there was no commitment on capacity use.
Shares in Adani Group companies have tumbled in recent weeks following a scathing report from US short seller Hindenburg Research that alleged market manipulation and accounting fraud. Some of Adani projects are likely to face delays in the aftermath of Hindenburg report.
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