Wednesday, August 10, 2022

HPCL buys out Shapoorji Pallonji’s stake in Chhara LNG Terminal JV for Rs 397 cr

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  • Post-acquisition of Shapoorji Pallonji’s stake, HPCL’s stake in HSEPL gets enhanced to 100 percent, making HSEPL a wholly owned subsidiary of HPCL

  • HSEPL is constructing a 5 MMTPA Liquified Natural Gas (LNG) Terminal at Chhara, Gujarat, at a project cost of about Rs 4,300 crore

New Delhi: State-run Hindustan Petroleum Corporation Limited (HPCL) has acquired the balance 50 percent equity stake from Shapoorji Pallonji Ports Pvt Ltd in HPCL Shapoorji Energy Private Limited (HSEPL), the entity which is currently building a 5 MMTPA LNG terminal in Chhara, Gujarat, HPCL said in an official statement on Tuesday. Post-acquisition, HPCL’s stake in HSEPL gets enhanced to 100 percent, making HSEPL a wholly owned subsidiary of HPCL, it added. In a regulatory filing to the stock exchanges, HPCL said that the deal was worth over Rs 397 crore. 

“It is now informed that the said transaction is completed on 30th March, 2021 with the transfer to HPCL 25.70 crore number of equity shares held by Mis. SP Ports Private Limited in HSEPL for a total consideration of Rs 397,06,50,000 (Rupees Three Ninety Seven Crore Six Lakh Fifty Thousand Only),” said the filing.

HSEPL constructing 5 MMTPA LNG terminal at Chhara, Gujarat

HSEPL is constructing a 5 MMTPA Liquified Natural Gas (LNG) Terminal at Chhara, Gujarat, at a project cost of about Rs 4,300 crore which is likely to be completed by the 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 MMTPA in the future.

‘Acquisition key step towards enhancing presence in natural gas value chain’

“The acquisition is in line with 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. Percentage of natural gas in the overall energy basket of India is expected to grow from 6 percent at present to 15 percent by 2030 which makes it one of the important growth drivers in future,” said HPCL in the official statement.

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HPCL, along with its joint venture companies, has presence in CGD business in 20 Geographical Areas (GA) in 34 districts covering nine states in the country. 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.

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