Royal Dutch Shell’s subsidiary Shell Gas BV has signed a pact to buyout Total Gaz’s stake to the tune of 26% in Hazira LNG and Port in Gujarat.
The buyout was announced in a press statement earlier in the year by Royal Dutch Shell, but the company did not disclose any of the financial considerations for the deal, which is subject to regulatory approvals.
The statement said that Shell Gas BV, a subsidiary of Royal Dutch Shell plc had signed a Letter of Intent (LoI) with Total Gaz Electricité Holdings France to acquire its 26% equity in Hazira LNG and Port venture in India, and is subject to regulatory approvals. Hazira LNG & Port venture comprises of two companies namely – Hazira LNG that operates an LNG regasification terminal in Gujarat and Hazira Port, which manages a direct berthing multi-cargo port at Hazira.
In this context, Shell said that the portfolio action was consistent with Shell’s strategy to deepen its presence in the gas value chain in India, the fourth largest LNG consumer in the world. And, Shell aimed to contribute to bridging the energy deficit and further augment gas supplies in India.
Meanwhile, Shell and Total are said to have a shareholding of 74% and 26% respectively in each of the companies that comprise. In this context, Maarten Wetselaar, Shell’s Integrated Gas & New Energies Director stated that the purchase created a fully-owned and integrated Shell value chain that is to supply from their global LNG portfolio, regasification at the Hazira facility, and downstream customer sales. He added that it also enabled Shell to better serve Indian customers and meet the country’s long-term need for more and cleaner energy. He continued that this would significantly strengthen the connection of the fastest growing gas markets in the world, India, and Shell’s unrivalled portfolio of competitive gas supply.