Dutch energy major Shell has signed a binding letter of intent to acquire Total’s 26% stake in the Hazira LNG and Port venture in Gujarat, India.
Upon completion of the deal, Total will exit the project and Shell will gain full control in the venture, which comprises two companies — Hazira LNG that operates an LNG regasification terminal in Gujarat; and Hazira Port that manages a direct berthing multi-cargo port at Hazira. The deal is subject to regulatory approvals.
“The move will allow Shell commercial and operational flexibility over Hazira to maximise integrated value and offer creative customer value propositions. 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 said in a statement.
In the meantime, Total also signed an agreement to sell half a million tonne of LNG per year to Shell over the next five years for selling in India and neighboring countries.