India: LNG Project Total Sells Equity in Hazira Terminal to Shell
Total announced that it sold its equity in India’s Hazira Terminal to Shell and signed an LNG sales agreement with the company.
Paris/France - The French group has signed a binding Letter of Intent (LOI) with Shell for the sale of its 26 % minority equity stake in Hazira LNG regasification terminal in India. The transaction remains subject to the approval of regulatory authorities.
In parallel, Total has signed an agreement to sell 0.5 million tons of liquefied natural gas (LNG) per year to Shell over 5 years, on a delivery basis to supply the markets of India and neighboring countries. The deliveries will be sourced from the company’s global LNG portfolio and are expected to begin in 2019. Philippe Sauquet, President Gas, Renewables and Power, said that the deal would enable Total to capture value through an asset disposal, while the LNG sales contract allowed them to maintain the balance of our LNG portfolio.
The Hazira Terminal includes a liquefied natural gas (LNG) storage and re-gasification terminal within a deepwater seaport.