Shell in talks with Essar to set up terminal in Hazira
Company to invest Rs 3,000 cr in cargo and container project
| For the container terminal, Shell is talking to several multinational firms, including Maersk, P&O Ports of Australia, Port of Singapore Authority (PSA) and Dubai Port International. | |||
| While Essar has been offered 50 per cent stake in the $100 million bulk cargo terminal, Shell is looking at 49 per cent equity partnership in the container terminal. | |||
| Shell has formed Hazira Port Pvt Ltd for building the terminals. "The ultimate investment (in the two terminals) will be Rs 3,000 crore," Shell India Director Marc den Hartog said. | |||
| He said Shell began commercial supplies of natural gas from its LNG terminal at Hazira from Saturday to its first customer, Gujarat State Petroleum Corporation. | |||
| Shell will sell 0.7 million standard cubic metres per day of gas to GSPC for 210 days, at a price of $3.70 per million British thermal unit (mbtu). | |||
| Shell's price is slightly higher than Petronet LNG Ltd's sale price of $3.66 per mbtu. | |||
| Hartog said the first LNG consignment was sourced from Australia's North-West Shelf project, in which Shell has a 22 per cent stake. | |||
| Shell is promoting the Hazira LNG terminal as a merchant terminal. The company was not following the conventional model of sourcing LNG from a particular project on long-term basis and then tying up long-term sales contracts with customers in India. | |||
| A Shell-controlled tanker, the 136,000 cubic metre Gemmata, carried the first cargo. | |||
| For future supplies, the company would be going in for flexible natural gas supply contracts for its 5 million tonne (mt) terminal at Hazira in Gujarat. | |||
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