Total to Exit Hazira LNG, Sell 26% Stake to Shell
French energy giant Total SA will exit the Indian liquefied natural gas (LNG) venture by selling 26% stake to its partner Royal Dutch Shell, the two companies announced.
"Total has signed a binding Letter of Intent (LOI) with Shell for the sale of its 26% minority equity stake in Hazira LNG regasification terminal in India. The transaction remains subject to the approval of regulatory authorities," said a press statement.
In parallel, Total has signed an agreement to sell 0.5 million tons of liquefied natural gas (LNG) per year to Shell over 5 years, on a delivery basis to supply the markets of India and neighboring countries. The deliveries will be sourced from Total’s global LNG portfolio and are expected to begin in 2019.
“This deal enables Total to capture value through an asset disposal, while the LNG sales contract allows us to maintain the balance of our LNG portfolio,” said Philippe Sauquet, President Gas, Renewables and Power. “We remain committed to supply the Indian subcontinent, which is a key market experiencing strong growth in LNG demand.”
Total is a global integrated energy producer and provider, a leading international oil and gas company, and a major player in low-carbon energies.
Total had in March 2004 picked up 26% stake in the 2.5 million tonnes a year Hazira LNG import terminal in Gujarat. The terminal capacity was later doubled to 5 million tonnes.
Hazira LNG terminal was commissioned in 2005 and expanded to 5 million tonnes in 2013. Shell holds the remaining 74% stake in Hazira LNG.