Deepika (India): Shell approached on stake in Indian LNG terminal: Posted Saturday 7 January 2006

LONDON, Jan 6 (Reuters) Oil major Royal Dutch Shell Plc has been approached by parties interested in taking a stake in its Hazira liquefied natural gas import terminal in India.

''We have been approached by interested parties,'' a Shell spokesman said but refused to say if talks were ongoing.

The Hazira terminal started operating last year and was designed to import 5 million tonnes of liquefied natural gas per year.

Industry sources said it was operating significantly below full capacity because Indian gas price controls meant it was hard to find buyers of gas at international market rates.

However, Shell said it remained committed to the project.

''We remain confident in the long-term strategic value of Hazira and expect to remain the majority shareholder but as with all investments we consider the possibility of new partners if they can add strategic value.''

Click here to return to ShellNews.net HOME PAGE