Shell Cuts Indian Utility Stake

Shell’s wholly owned subsidiary BG Asia Pacific Holdings has pared down its stake in India gas utility Mahanagar Gas (MGL), Shell said April 11.

BG Asia has diluted its shareholding in the publicly listed MGL from 32.5% to 24%, without disclosing the buyer or the price. The other shareholders of MGL are Gail which holds 32.5%; the government of Maharashtra with 10%; and the public which owns 25%. MGL primarily operates in Mumbai and adjoining areas and has almost 1mn customers. 

“This is part of Shell’s ongoing portfolio optimisation to transform Shell into a simpler company, delivering stronger returns. We believe in the key role that gas will play in India and continue to seek opportunities in that arena,” it said. “Our investment in the Hazira LNG receiving terminal in Gujarat and the recent creation of Shell Energy India, our gas marketing and trading business, shows our commitment to grow in India and to increase gas penetration in the country.”

Shell said it believes that India offers a vast opportunity for growth for Shell’s businesses and it will continue to pursue opportunities which can enhance Shell footprint in the country including in the retail network and custom-built technology and IT Centre in Bangalore.