Shell Gas B.V., a subsidiary of global energy giant Royal Dutch Shell plc, on Wednesday announced that it has completed the acquisition of 26 percent equity interest in the Hazira LNG and Port venture from French energy player Total GazElectricite Holdings.
The development brings Shell's equity interest in the LNG (Liquefied Natural Gas) terminal and port on the coast of Gujarat state to 100 percent now. "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," Shell said in a statement.
In August last year, the gas major had announced to acquire 26 percent stake from Total. The financials of the deal were not revealed. Strategically, the 100 percent ownership of the LNG and port venture will enable Shell to contribute towards India’s long-term need for more and cleaner energy solutions.
"Fifteen years ago, Shell invested in the Hazira project – the single largest foreign direct investment for India in the energy sector at the time. I am very proud that as a 100% shareholder, we will now be able to utilize this great infrastructure asset to its full potential and help provide much-needed gas to serve the growing energy needs of India," said Ajay Shah, Vice President, Shell Energy Asia.
Shell Energy India was established in 2017, to aggregate demand from downstream customers and secures competitive international supply to meet such demand. "Having commercial and operational flexibility over Hazira will further enable Shell to offer better customer value propositions and build a pan-India gas business," the statement said.