Shell to buy out Total in Hazira LNG terminal

Industry:    2018-08-28

Royal Dutch Shell has signed a pact to buyout French company Total Gaz’s 26% stake in Hazira LNG and Port in Gujarat, a press statement from the former said. Shell did not disclose the financial consideration for the deal which is subject to regulatory approvals.

“This portfolio action is consistent with Shell’s strategy to deepen its presence in the gas value chain in India, the fourth largest LNG (Liquefied Natural Gas) consumer in the world. Shell aims to contribute in bridging the energy deficit and further augment gas supplies in India,” Shell said. Hazira LNG & Port venture comprises two companies– Hazira LNG that operates a LNG regasification terminal in Gujarat; and Hazira Port, which manages a direct berthing multi-cargo port at Hazira.

Hazira LNG and Port is a partnership between Shell Gas B.V and Total Gaz Electricité Holdings France. Shell and Total have a shareholding of 74% and 26% respectively in each of the companies that comprise.

Maarten Wetselaar, Shell’s Integrated Gas & New Energies Director, 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,” he said.
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