Port of call: Shell keeps LNG contract
The concession agreement with Hazira Port expires after 30 years and the port assets would revert to GMB thereafter. But the assets do not include the regassification plant put up by the company near the terminal.
By Tushar Prabhune and Abhishek Shanker, TNN |
AHMEDABAD: Shell Hazira, the developer and operator of India’s second LNG terminal at Hazira, is set to formally acquire the rights to operate this port facility even after the end of the 30-year concession period. Hazira LNG Port (HLPL), the JV of the Shell, the Anglo-Dutch oil and gas major, and Total of France and the Hazira Port will soon sign the ‘LNG port user agreement’ with the state’s port regulatory body Gujarat Maritime Board (GMB).
The concession agreement with Hazira Port expires after 30 years and the port assets would revert to GMB thereafter. But the assets do not include the regassification plant put up by the company near the terminal.
“The LNG unloading arms of the LNG terminal of HLPL is situated within port premises and HLPL would continue to require rights of use including access, port facilities and harbour pilots. Consequently, an agreement providing for such rights at the end of 30 years is under development with GMB and likely to be executed shortly,” a company spokesperson said in an e-mailed response. The spokesperson said the agreement would provide for negotiations and mutual agreement on user charges as per the then market conditions.
The land given to HPPL for constructing the regassification unit is for more than 30 years whereas the terminal would be reverted to GMB after 30 years of concession period. This agreement is significant as it would give HLPL the rights to use the LNG terminal after the end of concession agreement too. “GMB had told the company that it would not be taking back the regassification plant even after the concession period. In response, Shell asked for the rights to use the port as without the rights for operating the terminal other facilities would be rendered useless,” a senior government official said.
The concession agreement with Hazira Port expires after 30 years and the port assets would revert to GMB thereafter. But the assets do not include the regassification plant put up by the company near the terminal.
“The LNG unloading arms of the LNG terminal of HLPL is situated within port premises and HLPL would continue to require rights of use including access, port facilities and harbour pilots. Consequently, an agreement providing for such rights at the end of 30 years is under development with GMB and likely to be executed shortly,” a company spokesperson said in an e-mailed response. The spokesperson said the agreement would provide for negotiations and mutual agreement on user charges as per the then market conditions.
The land given to HPPL for constructing the regassification unit is for more than 30 years whereas the terminal would be reverted to GMB after 30 years of concession period. This agreement is significant as it would give HLPL the rights to use the LNG terminal after the end of concession agreement too. “GMB had told the company that it would not be taking back the regassification plant even after the concession period. In response, Shell asked for the rights to use the port as without the rights for operating the terminal other facilities would be rendered useless,” a senior government official said.
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