<article><a href="https://www.dealstreetasia.com/?s=Shell Gas B.V." target="_blank" rel="noopener">Shell Gas B.V.</a>, a subsidiary of <a href="https://www.dealstreetasia.com/?s=Royal Dutch Shell Plc" target="_blank" rel="noopener">Royal Dutch Shell Plc</a>, announced on Monday that it has entered into an agreement with <a href="https://www.dealstreetasia.com/?s=Total Gaz Electricité Holdings France" target="_blank" rel="noopener">Total Gaz Electricité Holdings France</a> to acquire its 26% equity in the Hazira LNG and Port venture located in Gujarat.
The deal is subject to regulatory approvals, it said. The company did not disclose any financial details of the deal.</article>

<a href="https://www.dealstreetasia.com/?s=Shell Gas B.V." target="_blank" rel="noopener">Shell Gas B.V.</a>, a subsidiary of <a href="https://www.dealstreetasia.com/?s=Royal Dutch Shell Plc" target="_blank" rel="noopener">Royal Dutch Shell Plc</a>, announced on Monday that it has entered into an agreement with <a href="https://www.dealstreetasia.com/?s=Total Gaz Electricité Holdings France" target="_blank" rel="noopener">Total Gaz Electricité Holdings France</a> to acquire its 26% equity in the Hazira LNG and Port venture located in Gujarat.
The deal is subject to regulatory approvals, it said. The company did not disclose any financial details of the deal.
Shell is, meanwhile, also looking to source LNG from France’s Total.
“Like any competitive business, Shell continuously seeks opportunities to grow. We can confirm that we are also talking with Total for the potential supply of liquefied natural gas (LNG). We have no further comments at this time,” the company said in response to an e-mail query.
The deal, upon completion, will mark the exit of Total and Shell will hold 100% in Hazira LNG and Port.
Hazira LNG and Port comprises two companies – Hazira LNG Pvt Ltd that operates a LNG re-gasification terminal in Gujarat and Hazira Port Pvt Ltd that manages a direct berthing multi-cargo port at Hazira.
The move would allow Shell commercial and operational flexibility over Hazira to maximise integrated value and offer creative customer value propositions, Shell said in a press statement.
The Rs3,000 crore Hazira LNG terminal and port facilities in Surat district of Gujarat is regarded as a key foreign direct investment (FDI) project and represents one of the largest international investments in India in the energy sector, according to Shell India’s official website.
This portfolio action is consistent with Shell’s 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.
“Today marks an important milestone,” said Maarten Wetselaar, Shell’s integrated gas &amp; new energies director. “This purchase creates a fully owned and integrated Shell value chain – supply from our global LNG portfolio, re-gasification 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.”
Since the commission of Hazira LNG in 2005, the terminal has expanded from an initial re-gasification capacity of 2 million tonnes per annum (mtpa) to 3 mtpa in 2008 and then further to 5 mtpa in 2013. The Hazira LNG terminal was the first to introduce ‘spot’ LNG supplies into India.
An industry expert said that with the demand for LNG growing and given Hazira’s strategic location to industrial belts, it makes good business sense for Shell to gain complete control of the port and LNG business, especially if it’s looking for expansion.
The official, who did not wish to be named, said that the company has in the past weighed the option of doubling the capacity in a phased manner.
“The current capacity of the Hazira terminal is 5 million tonnes per annum. We have completed the technical studies to look at what would be the optimal configuration/re-gasification technology for further expansion of the Hazira terminal. Any investment decision will be subject to market maturity and future demand growth,” Shell said in its e-mail response.
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India: Shell Gas to acquire Total’s 26% stake in Hazira LNG and Port venture

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India: Shell Gas to acquire Total’s 26% stake in Hazira LNG and Port venture

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