Shell completes acquisition of Total’s 26% stake in Hazira LNG
Shell Gas, a subsidiary of Royal Dutch Shell, on Wednesday announced completion of its acquisition of 26% equity interest in the Hazira LNG and Port Venture in India from Total Gaz Electricite France, a unit of Total. With this, Shell now holds 100% in the venture. “The move allows Shell to build an integrated gas value chain: supply from its global LNG portfolio, regasification at the Hazira facility, and downstream customer sales,” the company said in a statement. Hazira LNG and Port Venture includes two firms Hazira LNG (which operates a LNG regasification terminal in Gujarat) and Hazira Port (which manages a direct berthing multi-cargo port at Hazira). As reported earlier by FE, Shell plans to have an LNG truck-loading unit by 2019 for distribution of the fuel in off-grid areas where there are no gas pipelines and one of the promoting companies of the terminal, Shell India, also plans to enter LNG downstream business in the country. The company is of the view that LNG as truck fuel and LNG transported through trucks rather than pipelines are economical alternatives which are still to pick up in India which typically relies on diesel at the moment. The company plans to supply LNG loaded on trucks to industrial units such as power plants, fertilisers and petrochemicals, among others. Shell has already set up a team in Singapore to promote the gas market in India. The Indian government is committed to promote natural gas in the country and increase the fuel’s share to 15% in the energy mix from around 6.5% at present. “It (completion of acquisition) further enables Shell to contribute towards India’s long-term need for more and cleaner energy solutions,” stated Shell’s statement. In India, Shell has a presence through a network of 250 retail fuel outlets across Karnataka, Tamil Nadu, Telangana, Maharashtra and Gujarat part from the LNG re-gasification terminal at Hazira.