Tuesday, 30 March 2021

HPCL acquires balance 50% stake in Chhara LNG Terminal

Hindustan Petroleum Corporation Limited (HPCL) has acquired the balance 50% equity stake in ‘HPCL Shapoorji Energy Private Limited (HSEPL)’ from M/s S P Ports Pvt Ltd on 30th March 2021.  Post-acquisition, HPCL’s stake in HSEPL gets enhanced to 100%, 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 4300 crore which is likely to be completed by 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 future.

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% at present to 15% by 2030 which makes it one of the important growth drivers in future.

HPCL, along with its joint venture companies, has presence in CGD business in 20 Geographical Areas (GA) in 34 districts covering 9 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.

Mumbai                                                                                                                          30.03.2021

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