Total will sell its 26% minority equity stake in Hazira LNG regasification terminal in India to Shell.
Additionally, Total has signed an agreement to sell 0.5 million tonnes of LNG per year to Shell over five years, on a delivery basis to supply the markets of Indian and neighbouring countries. The deliveries will be sourced from Total’s global LNG portfolio and are expected to begin in 2019.
Philippe Sauquet, president, gas renewables and power at Total, says: ‘This deal enables Total to capture value through an asset disposal, while the LNG sales contract allows us to maintain the balance of our LNG portfolio.
‘We remain committed to supply the Indian subcontinent, which is a key market experiencing strong growth in LNG demand.’