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Itochu to invest Rs 250 cr in Aegis Logistics' Haldia LPG terminal project

Japanese firm to pick up 19.7% stake in Hindustan Aegis LPG Company, which is building the project

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Aegis Logistics terminal
Rakesh Rao Mumbai
Last Updated : May 31 2017 | 12:18 PM IST
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Japan’s Itochu Corporation, through its subsidiary Itochu Petroleum Co (Singapore) Pte Ltd, will acquire 19.7 percent stake in Hindustan Aegis LPG Company Ltd (HALPG), a wholly-owned subsidiary of Aegis Logistics Limited, with an investment of Rs 250 crores. HALPG is developing and executing a major new LPG import terminal project at Haldia Port, West Bengal. The understanding is subject to final agreement and approval by the Board of Aegis Logistics Ltd, as well as customary conditions precedent and normal regulatory approvals.

“This investment in the new Haldia terminal is phase 2 of our joint venture with Itochu which we established in 2014 to grow our liquefied petroleum gas (LPG) business in India. The new terminal will expand our presence into the Eastern region with an import capacity of up to 2.5 million metric tonne per year,” said Anish Chandaria, CEO and managing director of Aegis. 

In September 2014, Aegis Logistics, one of the India’s leading oil, gas, and chemical logistics companies, sold 40 percent stake in its Singapore-based wholly owned subsidiary, Aegis Group International Pte Ltd, to Itochu Petroleum Co (Singapore) Pte Ltd for $ 5.85 million. This JV was established to strengthen Aegis Logistics’ competitive position in LPG sourcing, supply and shipping and also to support the company in building new LPG import terminal capacity in the country. 

Itochu Corporation, a Japanese multinational trading group specialising in oil & gas, metals and other commodities, which is also one of the big five general trading groups in Japan. Itochu Corporation is one of the largest global LPG companies by sales volumes and this investment represents its entry into the building of energy infrastructure in India.

With growth in LPG demand, imports in India are expected to soar over the coming ten years. The new venture with Itochu Corporation will enable Aegis Logistics to continue to significantly expand its LPG division. The group will be using part of the proceeds, to accelerate its capital expenditure programme for the next cycle of LPG import terminals after Haldia and to continue building its ‘necklace of terminals’ around India.

Aegis Logistics has five distinct but related business segments, and operates a national network of liquid terminals, LPG terminals, filling plants, pipelines, and gas stations to deliver products and services. Its client base includes many leading industrial companies in India as well as retail outlets and customers whom the company serve through distributors and Aegis Autogas stations. Aegis Group also operates internationally through its sourcing and trading subsidiaries located in Singapore.

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First Published: May 31 2017 | 12:15 PM IST

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