India’s Hindustan Petroleum becomes sole owner of Gujarat LNG terminal

India’s Hindustan Petroleum Corp said it has purchased a 50 percent stake in the Chhara LNG import terminal under construction in Gujarat, becoming the sole owner of the facility.

The Mumbai-headquartered unit of state-owned ONGC said in a stock exchange announcement it had entered into the share purchase deal with partner SP Ports.

The two firms had developed the LNG project via a 50/50 joint venture HPCL Shapoorji Energy.

According to Hindustan Petroleum, the duo has “mutually agreed” on the all-cash transaction worth about $54 million.

Local media reports suggest that the reason behind the sale could be debt issues at SP Ports’ parent firm Shapoorji Pallonji Group.

Following the closure of the deal on March 30, the LNG terminal developer HPCL Shapoorji Energy became a wholly-owned unit of Hindustan Petroleum.

The terminal at Chhara port would have a capacity of 5 million tonnes per year but there are options for expansion to a total of 10 mtpa.

Moreover, the LNG terminal would bring “long-term value to the company being a growing segment of the energy basket of the nation,” Hindustan Petroleum said.

The company previously said it expected to launch the facility in 2022.

- Advertisements -

Most Popular

Sempra targets Cameron LNG expansion FID in H1 2025

US LNG exporter Sempra Infrastructure, a unit of Sempra, expects to take a final investment decision to expand its...

Cedar LNG FID pushed back

Canada’s Pembina Pipeline and the Haisla Nation have again postponed a final investment decision on their Cedar floating LNG...

Golar inks framework FLNG deal

Floating LNG player Golar LNG said it had signed a framework agreement with a "potential customer" for a long-term...

More News Like This

India in talks to buy stake in Novatek’s Arctic LNG 2 project

India is looking to buy a stake in the Novatek-operated Arctic LNG 2 project on the Gydan Peninsula. Hardeep Singh...

India’s ONGC to create gas and LNG unit

India's Oil and Natural Gas Corp (ONGC) is forming a wholly-owned subsidiary to focus on its gas and LNG...