HPCL buys out Shapoorji Pallonji stake in LNG venture

NEW DELHI: Hindustan Petroleum Corporation Ltd (HPCL) has bought out the 50% stake of SP Ports, a Shapoorji Pallonji group company, in a joint venture building a gas import terminal in Gujarat, for Rs 397 crore.
HPCL and SP Ports held 50 per cent stake each in HPCL Shapoorji Energy Pvt Ltd (HSEPL).
HSEPL has become 100 per cent subsidiary of HPCL after the acquisition, the company said in a statement on Tuesday.
HSEPL is constructing a terminal to import 5 million tonne a year of gas in ships at Chhara in the Gir-Somnath district of Gujarat at a cost of Rs 4,300 crore. The project is scheduled to ne completed by the end of 2022.
The terminal will have all facilities for receiving LNG (liquefied natural gas) and regassifying fuel onward supply through the gas grid.
“The acquisition is in line with the 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 company said.
The government is targeting raising the share of natural gas in India”s energy basket to 15 per cent by 2030 from the current 6 per cent with a view to cutting carbon emissions and making the economy more efficient.
HPCL, along with its joint venture companies, has a presence in the city gas distribution (CGD) business in 20 Geographical Areas (GA) made up of 34 districts in nine states.
It owns and operates 674 CNG stations as on date which it plans to expand further, the statement said without giving details.
It is also making a foray into setting up of LNG dispensing stations.

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