French oil giant Total will take 26 per cent stake in Royal Dutch/Shell's $600 million Hazira liquefied natural gas import project in Gujarat.
"Shell Gas BV, a member of the Royal Dutch/Shell Group of Company, the largest private LNG supplier in the world, announces that it has agreed to the terms of Total Gaz Electricite Holdings France to take a 26 per cent share in the Hazira project," Shell India said in a statement in New Delhi on Thursday.
The Hazira project includes a port and LNG import and regassification facilities with a capacity of 5 million tonnes per annum. In the first phase, 2.5 million tonnes LNG terminal will be set up by 2004-end and this may be raised upto 10 million tonnes in future.
"Shell remains the majority owner and operator (of Hazira terminal)," the release said, adding the value and terms of the deal will not be disclosed.
Total will take 26 per cent stake in each of the three companies that comprise the project -- Shell Hazira Gas Pvt Ltd, Hazira LNG Pvt Ltd and Hazira Port Pvt Ltd -- subject to the approval of state and Union government bodies.
Vikram Singh Mehta, chairman of Shell Group of Companies in India, said: "We are delighted to confirm this deal today and welcome Total to the project. This partnership is the culmination of a search to include a value-adding joint venture partner, who has common purpose with Shell's commitment to India."
"Total's interest underscores a common understanding between partners in appreciating Hazira's location, close to the growing markets for gas in north and north-west India.
Both partners are confident that Hazira's proximity to existing and upcoming gas transmission infrastructure will be a key attribute to its commercial success," Shell India director (gas and power) Marc den Hartog said.
Shell said the Hazira project was on schedule to deliver gas in the fourth quarter of 2004.
"Contracts for the sale of regasified LNG are currently being matured and we intend to secure the first Hazira customer shortly. There is no change in the management and it is business as usual," Hartog said.
Over 70 per cent of the port and receiving terminal work was complete and the commissioning of the terminal was scheduled in the second half of this year.
Shell is also working on plans to expand the new, all-weather port at Hazira to handle solid cargo in addition to LNG.
