Hindustan Petroleum Corp. Ltd (HPCL) has acquired a 50% equity stake in HPCL Shapoorji Energy Private Ltd (HSEPL) from S P Ports Private Ltd.
HSEPL is constructing a 5 million tpy LNG terminal at Chhara, Gujarat, India. 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 million tpy in future.
The acquisition is in line with the 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.
HPCL, along with its joint venture companies, has presence in city gas distribution (CGD) business in 20 geographical areas in 34 districts covering 9 states in the country. HPCL on its own operates 674 CNG stations 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.