It is learnt that Hindustan Petroleum
Corporation has backed out from the race to acquire a substantial stake in Royal
Dutch Shell's LNG terminal at Hazira. This was even after submitting a non-binding
offer and completing the due diligence of the terminal.
The development was attributed as
inability of Shell to give a commitment of assured LNG supply on a long-term
basis. Besides HPCL, Bharat Petroleum Corp (BPCL), Indian Oil Corp (IOC) and
GAIL are also in talks with Shell for buying stake in the terminal.
Total of France has 26 per cent
interest in each of the three companies that comprise the Hazira LNG terminal
and the port - the port company, the LNG terminal company and the marketing
HPCL has already conducted a detailed
feasibility study for this project and the project cost is pegged at around
Rs.2,600 crore. The scope of developing LNG terminal at Mundra also includes
associated gas evacuation pipelines from Mundra to Delhi.
to use Shell Hazira terminal on toll basis (10-Feb-06)