Total Agrees Minority Hazira Sale to Shell

French major Total said August 27 it has signed a letter of intent to sell its minority 26% equity stake in the Hazira LNG regasification terminal in India to Anglo-Dutch major Shell. The transaction remains subject to regulatory approval.

At the same time, Total has signed an agreement to sell 0.5mn metric tons/year of LNG to Shell over five years to supply markets in India and neighbouring countries. The deliveries will be sourced from Total’s global LNG portfolio and are expected to begin in 2019.

“This deal enables Total to capture value through an asset disposal, while the LNG sales contract allows us to maintain the balance of our LNG portfolio,” said Philippe Sauquet, Total’s gas, renewables and power president. “We remain committed to supply the Indian subcontinent, which is a key market experiencing strong growth in LNG demand.”