AG&P Singapore in Negotiations to Acquire H-Energy's LNG Terminal
OIL & GAS

AG&P Singapore in Negotiations to Acquire H-Energy's LNG Terminal

Singapore-headquartered Atlantic, Gulf & Pacific Company (AG&P) is in negotiations with Darshan Hiranandani's H-Energy to acquire its liquefied natural gas (LNG) terminal in Jaigarh, Maharashtra, according to two individuals familiar with the development.

This acquisition would be a strategic move for AG&P, which intends to use the terminal to source LNG domestically and grow its city gas distribution business. Darshan Hiranandani chose not to comment on the matter.

An industry executive, who wished to remain anonymous, mentioned that the deal is likely to be finalized in a few weeks. AG&P has been seeking an LNG terminal in India to import LNG for its city gas distribution operations, and the Jaigarh terminal appears to be an ideal match. HE Terminals, a subsidiary of H-Energy, has established an LNG regasification project at Jaigarh through its subsidiary Western Concessions.

HE Terminals had planned to develop two LNG terminals in India at an estimated cost of $3 billion, one in Jaigarh and another as a floating LNG import terminal near Haldia, West Bengal. In March 2016, it received authorization to lay, build, operate, or expand the Jaigarh-Panjim-Karwar Udupi-Mangalore natural gas pipeline, which extends 635 kilometres. The total estimated cost of this pipeline project was ?2.4 crore. However, as of 2021, only 10% of the pipeline was completed. In June of the previous year, the Petroleum and Natural Gas Regulatory Board encashed Rs 50 million, equivalent to 25% of H-Energy's bank guarantee, due to delays in constructing the pipeline from Jaigarh to Mangalore. The pipeline was originally scheduled for completion by June 2019. H-Energy's appeal against the regulator's order is currently pending.

HE Terminal's consolidated financial statements for the April 2022-March 2023 period, filed with the Registrar of Companies, indicate a post-tax loss of Rs 3.60 billion and accumulated losses totalling Rs 6.49 billion.

Singapore-headquartered Atlantic, Gulf & Pacific Company (AG&P) is in negotiations with Darshan Hiranandani's H-Energy to acquire its liquefied natural gas (LNG) terminal in Jaigarh, Maharashtra, according to two individuals familiar with the development. This acquisition would be a strategic move for AG&P, which intends to use the terminal to source LNG domestically and grow its city gas distribution business. Darshan Hiranandani chose not to comment on the matter. An industry executive, who wished to remain anonymous, mentioned that the deal is likely to be finalized in a few weeks. AG&P has been seeking an LNG terminal in India to import LNG for its city gas distribution operations, and the Jaigarh terminal appears to be an ideal match. HE Terminals, a subsidiary of H-Energy, has established an LNG regasification project at Jaigarh through its subsidiary Western Concessions. HE Terminals had planned to develop two LNG terminals in India at an estimated cost of $3 billion, one in Jaigarh and another as a floating LNG import terminal near Haldia, West Bengal. In March 2016, it received authorization to lay, build, operate, or expand the Jaigarh-Panjim-Karwar Udupi-Mangalore natural gas pipeline, which extends 635 kilometres. The total estimated cost of this pipeline project was ?2.4 crore. However, as of 2021, only 10% of the pipeline was completed. In June of the previous year, the Petroleum and Natural Gas Regulatory Board encashed Rs 50 million, equivalent to 25% of H-Energy's bank guarantee, due to delays in constructing the pipeline from Jaigarh to Mangalore. The pipeline was originally scheduled for completion by June 2019. H-Energy's appeal against the regulator's order is currently pending. HE Terminal's consolidated financial statements for the April 2022-March 2023 period, filed with the Registrar of Companies, indicate a post-tax loss of Rs 3.60 billion and accumulated losses totalling Rs 6.49 billion.

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