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.

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