HPCL may pick up stake in Shell's Hazira

Hindustan Petroleum Corporation (HPCL) is planning to acquire stake in Shell India's Hazira LNG terminal at Gujarat.

"We are talking to them for picking up stake in Hazira. The picture would be clearer by January and a deal is possible by the end of this fiscal," M B Lal, chairman and managing director of HPCL, said. 

Lal also added HPCL was in talks with Shell for the equity but there were various issues such as valuation of the stake and the LNG supply that needed to be looked into.

HPCL is believed to be interested in acquiring a 25% stake in the terminal. Lal, however, refused to specify but said it was a good opportunity for the government-run refining and marketing company as it does not have an presence in the LNG business so far.

Shell is unlikely to offload more than 25% since its own equity would then fall to less than 51%.