Hindustan Petroleum acquires balance 50% stake in Chhara LNG Terminal
Hindustan Petroleum Corporation Limited (HPCL) has acquired the balance 50 per cent equity stake in HPCL Shapoorji Energy Private Limited (HSEPL) from SP Ports Private limited company.
Post acquisition, HPCL's stake in HSEPL gets enhanced to 100 per cent, making HSEPL a wholly-owned subsidiary of HPCL.
HSEPL is constructing a five million tonnes per annum (MTPA) LNG terminal (with provision for expansion to 10 MTPA) at Chhara in Gujarat's Gir-Somnath district, at an estimated cost of about Rs 4,300 crores, which is likely to be completed by end of 2022.
The terminal will have all facilities for receipt of LNG through ocean-going tankers, marine unloading, storage, LNG road tanker loading, regasification, and supply of regasified LNG to the gas grid.
The acquisition is in line with the overall future strategy of HPCL to diversify its product portfolio and is an important step in the direction of having a strong presence in the total natural gas value chain. The percentage of natural gas in the overall energy basket of India is expected to grow from six per cent at present to 15 per cent by 2030 which makes it one of the important growth drivers in the future.
HPCL, along with its joint venture companies, has a presence in CGD (City Gas Distribution) business in 20 Geographical Areas (GA) in 34 districts covering nine states in the country.
HPCL, on its own, operates 674 CNG (Compressed Natural Gas) stations as of the date which it plans to expand further. It is also foraying into setting up LNG dispensing stations. These, together with the focus on enhanced use of natural gas in refineries of HPCL and its joint ventures/subsidiaries add to the strategic value of the acquisition.