+
HPCL to buy 50% stake in Shapoorji LNG terminal
OIL & GAS

HPCL to buy 50% stake in Shapoorji LNG terminal

Hindustan Petroleum Corporation Ltd (HPCL) has entered into a Share Purchase Agreement (SPA) for the acquisition of 50% shares of the paid-up equity share capital of HPCL Shapoorji Energy Private Limited (HSEPL)—an HPCL-Shapoorji joint venture, as the financially stressed Shapoorji Pallonji Group pursues asset monetisation plans to pare debt.

The undisclosed all-cash deal, signed on March 27, was done on mutually agreed pre-money enterprise valuation, HPCL said in a regulatory filing.

The acquisition will make HSEPL a wholly-owned unit of HPCL. HSEPL is developing a 5 million tonne per annum (mmtpa) LNG terminal (with provision for expansion to 10 mmtpa) at Chhara in Gujarat's Gir-Somnath district, at an estimated cost of Rs 5,408.82 crore.

The LNG terminal is located within the greenfield Chhara port's boundary being developed by Simar Port Private Limited, a wholly-owned subsidiary of SP Ports.

SP Ports is a 100% owned subsidiary of Shapoorji Pallonji Limited (SP Infra), which, in turn, is a wholly-owned unit of Shapoorji Pallonji And Company Pvt Ltd, the flagship company of the Shapoorji Pallonji Group (SP Group).

The terminal will be operated on a tolling model under which, off-takers will book capacity in the terminal on take or pay basis, source the LNG, re-gasify it at the facility, pay regasification charges, and sell the RLNG to end consumers through a high-pressure gas grid. HSEPL has received all the regulatory approvals for the commencement of construction activities for the project.

Financial stress had led the Shapoorji Pallonji Group to push back the completion of the new port at Chhara by three years to December 2023.

In November last year, the Expert Appraisal Committee (EAC) in the Ministry of Environment, Forest and Climate Change had endorsed an application filed by Simar Port Pvt Ltd seeking extension of the environmental and CRZ clearance granted by the Ministry by three years till January 2024.

Simar Port Pvt Ltd is building the port at Chhara with a capacity to handle 40 million tonnes (mt) of bulk cargo, 2 million twenty-foot equivalent units of containers, 20 mt of LNG and 10 mt of petroleum products under a concession agreement signed with the Gujarat Maritime Board.

Seeking extension of environment clearance, Simar Port, in its application to the Expert Appraisal Committee, said that Shapoorji Pallonji Group's revenues are severely impacted due to the ongoing pandemic of Covid-19. This has put short-term strain on SP Group for funding the project and has resulted in delays in equity infusion in the project, which has affected land acquisition and construction activities.

Image Source


Also read: Shapoorji Pallonji may sell stake in three companies

Also read: Oil PSUs plan asset monetisation through InvITs

Hindustan Petroleum Corporation Ltd (HPCL) has entered into a Share Purchase Agreement (SPA) for the acquisition of 50% shares of the paid-up equity share capital of HPCL Shapoorji Energy Private Limited (HSEPL)—an HPCL-Shapoorji joint venture, as the financially stressed Shapoorji Pallonji Group pursues asset monetisation plans to pare debt. The undisclosed all-cash deal, signed on March 27, was done on mutually agreed pre-money enterprise valuation, HPCL said in a regulatory filing. The acquisition will make HSEPL a wholly-owned unit of HPCL. HSEPL is developing a 5 million tonne per annum (mmtpa) LNG terminal (with provision for expansion to 10 mmtpa) at Chhara in Gujarat's Gir-Somnath district, at an estimated cost of Rs 5,408.82 crore. The LNG terminal is located within the greenfield Chhara port's boundary being developed by Simar Port Private Limited, a wholly-owned subsidiary of SP Ports. SP Ports is a 100% owned subsidiary of Shapoorji Pallonji Limited (SP Infra), which, in turn, is a wholly-owned unit of Shapoorji Pallonji And Company Pvt Ltd, the flagship company of the Shapoorji Pallonji Group (SP Group). The terminal will be operated on a tolling model under which, off-takers will book capacity in the terminal on take or pay basis, source the LNG, re-gasify it at the facility, pay regasification charges, and sell the RLNG to end consumers through a high-pressure gas grid. HSEPL has received all the regulatory approvals for the commencement of construction activities for the project. Financial stress had led the Shapoorji Pallonji Group to push back the completion of the new port at Chhara by three years to December 2023. In November last year, the Expert Appraisal Committee (EAC) in the Ministry of Environment, Forest and Climate Change had endorsed an application filed by Simar Port Pvt Ltd seeking extension of the environmental and CRZ clearance granted by the Ministry by three years till January 2024. Simar Port Pvt Ltd is building the port at Chhara with a capacity to handle 40 million tonnes (mt) of bulk cargo, 2 million twenty-foot equivalent units of containers, 20 mt of LNG and 10 mt of petroleum products under a concession agreement signed with the Gujarat Maritime Board. Seeking extension of environment clearance, Simar Port, in its application to the Expert Appraisal Committee, said that Shapoorji Pallonji Group's revenues are severely impacted due to the ongoing pandemic of Covid-19. This has put short-term strain on SP Group for funding the project and has resulted in delays in equity infusion in the project, which has affected land acquisition and construction activities. Image Source Also read: Shapoorji Pallonji may sell stake in three companies Also read: Oil PSUs plan asset monetisation through InvITs

Next Story
Infrastructure Urban

86 Projects Worth Rs 3.14 Billion Under Construction Post IKGS

A total of 86 projects, with combined investments of Rs 3.14 billion, which received Expressions of Interest (EOIs) at the Invest Kerala Global Summit (IKGS) held in Kochi last February, have commenced construction, said P Rajeeve, Kerala’s Minister for Industries, Law and Coir.“The IKGS attracted 424 investment projects worth Rs 17.77 billion. Of these, over 20 per cent have already begun construction,” the minister noted. Upon completion, these 86 projects are expected to generate approximately 40,439 jobs. While 268 projects have secured land, 156 are still awaiting land allotment.Raj..

Next Story
Infrastructure Energy

Shakti Pumps Raises Rs 2.92 Bn via QIP for Solar Expansion

Shakti Pumps (India) has successfully concluded its Qualified Institutions Placement (QIP), raising Rs 2.92 billion from prominent institutional investors. The issue received strong interest from both existing and new investors, reflecting their confidence in the company’s long-term growth trajectory.The funds raised will be deployed to establish a greenfield high-efficiency solar DCR cell and solar PV module manufacturing facility in Pithampur, Madhya Pradesh. The project, to be undertaken through its subsidiary Shakti Energy Solutions, will have a production capacity of 2.20 GW. This move ..

Next Story
Technology

Orient Technologies Unveils New Digital Identity on 28th Foundation Day

Orient Technologies, a leading provider of digital transformation and IT infrastructure services, has launched its refreshed digital identity to mark its 28th Foundation Day. The new identity reflects the company’s evolution from a trusted systems integrator to a strategic partner in digital transformation, while reaffirming its commitment to customer-centric innovation.Central to the brand refresh is the upgraded website, designed for intuitive navigation and aligned with client expectations. Services are now streamlined under two clear verticals—IT Infrastructure Solutions and Applicatio..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?