Hindustan Petroleum Corporation Limited (HPCL) has acquired the balance 50% equity stake in HPCL Shapoorji Energy Private Limited (HSEPL) from M/s S P Ports Pvt Ltd on 30 March 2021. Post-acquisition, HPCL’s stake in HSEPL gets enhanced to 100%, making HSEPL a wholly owned subsidiary of HPCL.
HSEPL is constructing a 5 million tpy LNG terminal at Chhara, Gujarat, India, at a project cost of approximately Rs 4300 crore which is likely to be completed by end of calendar year 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 project is further expandable to a capacity of 10 million tpy in the future.
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 6% at present to 15% by 2030, which makes it one of the important growth drivers in future.
HPCL, along with its joint venture companies, has presence in CGD business in 20 geographical areas in 34 districts covering nine states in India. HPCL on its own operates 674 CNG stations as on date which it plans to expand further. It is also foraying into setting up of 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.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02042021/hpcl-acquires-50-stake-in-indian-lng-terminal/