Royal Dutch Shell Plc said on Monday it has agreed to acquire the 26% stake it doesn’t already own in Hazira liquefied natural gas terminal in Gujarat from French energy company Total SA.
The move will allow Shell commercial and operational flexibility over Hazira “to maximise integrated value and offer creative customer value propositions”, the company said in a statement.
Shell Gas BV, a subsidiary of Royal Dutch Shell, has signed a binding letter of intent with Total Gaz Electricité Holdings France for buying the stake, subject to regulatory approvals.
The deal involves two companies: Hazira LNG Pvt. Ltd, which operates the LNG regasification terminal; and Hazira Port Pvt. Ltd, which manages a direct berthing multi-cargo port at Hazira.
Shell said the transaction is consistent with its strategy to deepen its presence in the gas value chain in India, the fourth-largest LNG consumer in the world. Shell aims to contribute in bridging the energy deficit and further augment gas supplies in India, it 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,” said Maarten Wetselaar, Shell’s integrated gas and new energies director.
Shell Energy India was established in 2017 to aggregate demand from downstream customers, secure international supply to meet such demand, and sell that gas to customers across India.
Shell and Total had formed the joint venture for the Hazira terminal in 2004. The terminal was commissioned the following year. It has a capacity of 5 million tonnes.