Royal Dutch Shell has entered into an agreement with Total Gaz Electricité Holdings France to acquire 26% stake in the Hazira LNG and Portventure in India.
Hazira LNG and Portventure consists of two companies- Hazira LNG (HLPL) and Hazira Port (HPPL).
While Hazira LNG operates a LNG regasification terminal in the State of Gujarat, Hazira Port manages a direct berthing multi-cargo port at Hazira.
Spread over an area of 46.7 hectares, the terminal has a capacity of 5 million tons per annum (mtpa) of LNG.
The acquisition, which is subject to regulatory approvals, is in line with Shell’s strategy to deepen its presence in the gas value chain in India, the fourth largest LNG consumer in the world.
Besides, it is expected to allow Shell to gain commercial and operational flexibility over Hazira to maximise integrated value.
Shell’s Integrated Gas & New Energies director Maarten Wetselaar said: “This purchase creates a fully-owned and integrated Shell value chain – supply from our global LNG portfolio, regasification at the Hazira facility, and downstream customer sales.
“It enables Shell to better serve Indian customers and meet the country’s long-term need for more and cleaner energy. This also significantly strengthens the connection of the fastest growing gas markets in the world, India, and Shell’s unrivaled portfolio of competitive gas supply.”
Total has also signed an agreement to sell 0.5 million tons of per year to Shell over 5 years. The LNG sale will be carried out on a delivery basis to supply the markets of India and neighboring countries.
Sourced from Total’s global LNG portfolio, the deliveries are anticipated to start in 2019.
Total gas, renewables and power president Philippe Sauquet said: “This deal enables Total to capture value through an asset disposal, while the LNG sales contract allows us to maintain the balance of our LNG portfolio.
“We remain committed to supply the Indian subcontinent, which is a key market experiencing strong growth in LNG demand.”