Public sector oil marketing major Hindustan Petroleum Corporation (HPCL) is considering selling partial equity stake of its subsidiary HPCL Shampooer Private Limited (HSEPL).
HSEPL, a joint venture between HPCL and Shampooer Palliation, was formed for setting up a liquefied natural ass (LNG) terminal at Char in the Maharashtra region of Gujarat. Sources in both HSEPL and the Gujarat’s ports and transport department confirmed that the PSE is exploring the option of selling up to 50% stake to suitable buyers.
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HSEPL was originally formed nine years ago as a 50:50 joint venture company by HPCL and Mumbai-based Shampooer Palliation Group firm SP Ports Private Limited (SPPPL). In March 2021, HPCL acquired a 50% stake of SPPPL which had run into financial problems. As a result, HSEPL became a wholly owned subsidiary of HPCL.
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HSEPL is in the process of constructing a 5 MMTPA LNG terminal in the Gr-Somnath district at an estimated cost of Rs 4,300 corer. The Union Ministry of Environment, Forest and Climate Change (Moe F) had accorded the environment and coastal regulatory zone clearance to HSEPL in March 2019. The terminal is likely to become operational by the end of 2023.
The Terminal will have all the facilities for receiving LNG through ocean-going tankers, marine unloading, storage, LNG road tanker loading, reclassification, and supply of classified LNG to the gas grid. The project is further expandable to a capacity of 10 MMTPA in future, said the sources.