Shell to acquire Total’s 26% stake in Hazira LNG, Port

French energy giant Total will exit the Indian LNG venture by selling 26 per cent stake to its partner Royal Dutch Shell, the two companies said on Monday.

Total had in March 2004 picked up 26 per cent stake in the 2.5 million tonnes a year Hazira liquefied natural gas (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 per cent stake in Hazira LNG.

"Total has signed a binding Letter of Intent (LOI) with Shell for the sale of its 26 per cent minority equity stake in Hazira LNG regasification terminal in India," the company said in a statement.The transaction remains subject to the approval of regulatory authorities. Shell in a separate statement said its subsidiary, Shell Gas BV has entered into an agreement with Total Gaz Electricité Holdings France to acquire its 26 per cent equity in the Hazira LNG and Port venture located in Gujarat.

Neither company disclosed financial details of the deal.

In parallel, Total signed an agreement to sell 0.5 million tonne LNG per year to Shell over 5 years, on a delivery basis to supply the markets of India and neighboring countries.