State-run Hindustan Petroleum Corporation Limited (HPCL) has entered into a share purchase agreement (SPA) for the acquisition of shares of HPCL Shapoorji Energy Private Limited, from S P Ports Private Limited.
This acquisition does not require regulatory approval, the company said in its filing. HPCL Shapoorji Energy Private Limited is an associate unlisted company of HPCL and part of a joint venture with S P Ports Private Limited.
HPCL Shapoorji Energy Private Limited (HSEPL) is in the process of setting up and developing a 5 mmtpa LNG storage and regasification terminal at Chhara, Gujarat. But as the unit is still under construction, no revenues have been made from the operation.
HSEPL’s LNG Terminal Project is expected to bring long-term value to the company “as a growing segment of the energy basket of the nation”, it said.
The company has entered into a share purchase agreement dated March 27, 2021 for the acquisition of 50 percent of the paid-up equity share capital of HPCL- SEPL from S P Ports Private Limited. HPCL holds 50 percent of the equity share capital of HSEPL as of December 31, 2020.
Incorporated in October 2013, HSEPL was set up to operate an LNG regasification terminal at the greenfield port at Chhara (Gujarat). EPC contracts have been awarded and construction is in progress at the project site.
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