State-owned oil firm Hindustan Petroleum Corp Ltd (HPCL) may reportedly sell up to 50% stake in a subsidiary behind a liquefied natural gas unit in Gujarat's Chhara. The subsidiary initially called HPCL Shapoorji Energy had been set up as a joint venture, before HPCL acquired Shapoorji Pallonji's stake in the firm because of the latter's financial woes.
HPCL has already invested up to Rs 4500 crore and may share the risk, as it is set to be completed by June. But considering the work left, the terminal may not be operational anytime before December 2023.
HPCL LNG has its own agreement with the Gujarat government on gas transmission that involves setting up a pipeline covering 85 kilometres between Pipavav and Chhara. The gas terminal in Chhara will start docking LNG tankers to pump out gas in the first three months of 2023.
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