Total to exit from Hazira LNG venture; to sell 26% stake to Shell

International oil & gas company Total will fully exit from its Hazira Liquified natural gas (LNG) venture, through a sale of its 26% stake to Shell, its partner for the venture.

“Shell Gas B.V., a subsidiary of Royal Dutch Shell plc (“Shell”), announced on Monday that it has signed a binding Letter of Intent (LoI) with Total Gaz Electricité Holdings France (“Total”) to acquire its 26% equity in the Hazira LNG and Port venture in India, subject to regulatory approvals,” Shell said in a press statement on Monday. Shell already holds 74% interest in the project.

The Hazira LNG and Port venture comprises two companies - Hazira LNG (HLPL) and Hazira Port (HPPL). HLPL operates a LNG (Liquefied Natural Gas) regasification terminal in the State of Gujarat and HPPL manages a direct berthing multi-cargo port at Hazira. Total’s full exit will allow Shell commercial and operational flexibility over Hazira to maximise integrated value and offer creative customer value propositions.

“This portfolio action is consistent with Shell’s strategy to deepen its presence in the gas value chain in India, the fourth largest LNG consumer in the world. Shell aims to contribute in bridging the energy deficit and further augment gas supplies in India,” Shell said in its statement.