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Hindustan Petroleum Corporation Ltd (HPCL) on Tuesday said it has completed the deal to acquire the balance 50 per cent stake in HPCL Shapoorji Energy Pvt Ltd (HSEPL), from SP Ports Pvt Ltd, for Rs 397.06 crore.
HSEPL is building a 5 million tonnes per annum (mtpa) LNG terminal (with provision for expansion to 10 mtpa) at Chhara in Gujarat’s Gir-Somnath district, at an estimated to cost about ₹4,300 crore.
The LNG terminal is located within the boundary of the greenfield Chhara port being developed by Simar Port Pvt Ltd, a wholly owned subsidiary of SP Ports.
The acquisition of the 50 per cent stake will make HSEPL a wholly-owned unit of HPCL. It had purchased the initial 50 per cent stake in the terminal for ₹397.065 crore.
The terminal is expected to be completed by December 2022.
The stake sale is part of the asset monetisation plans of the financially stressed Shapoorji Pallonji Group and free it from meeting the obligations towards the under-construction LNG terminal, sources said.
“HPCL considers natural gas to be an important part of the country’s energy basket and a future growth driver. HPCL would like to have its presence in complete value chain of natural gas business. The LNG terminal at Chhara is in line with HPCL’s future strategy,” the company said in a statement.
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