Total has announced that it has signed a binding letter of intent (LoI) with Shell for the sale of its 26% minority equity stake in the Hazira LNG regasification terminal in India.
Total claims that the transaction remains subject to the approval of regulatory authorities. In parallel, Total has signed an agreement to sell 0.5 million tpy of LNG to Shell over a five-year period on a delivery basis to supply the markets of India and neighbouring countries. The deliveries will be sourced from Total’s global LNG portfolio and are expected to commence next year.
Philippe Sauquet, President Gas, Renewables and Power, said: “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.
“We remain committed to supply the Indian subcontinent, which is a key market experiencing strong growth in LNG demand.”