Shell Gas has closed the acquisition of a 26% equity interest in the Hazira LNG and Port venture in Gujarat, India, from an affiliate of French firm Total.

The company signed an agreement last August to purchase the stake from Total Gaz Electricité Holdings France.

With the acquisition, Shell has now increased its equity interest in the Hazira venture to 100%.

Shell Energy Asia vice-president Ajay Shah said: “15 years ago, Shell invested in the Hazira project – the single largest foreign direct investment for India in the energy sector at the time.

“I am very proud that as a 100% shareholder, we will now be able to utilise this great infrastructure asset to its full potential and help provide much-needed gas to serve the growing energy needs of India.”

“We will now be able to utilise this great infrastructure asset to its full potential and help provide much-needed gas to serve the growing energy needs of India.”

The transaction will enable the company to build an integrated gas value chain. Gas will be procured from Shell’s global LNG portfolio for regasification at the Hazira facility. The value chain also includes downstream customer sales.

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Shell also noted that the deal will allow it to contribute towards India’s long-term demand for cleaner energy solutions.

The company formed its Shell Energy India unit in 2017 in a bid to aggregate demand from downstream customers and secure competitive international supply to meet the demand.

Gaining complete control over the Hazira facility will also support the company’s efforts to offer better customer value propositions and build a pan-India gas business.

The Hazira project was commissioned in 2005 and began commercial sale of regasified LNG for customers in north and west India in the following year. Total entered the project in 2004.

Shell also sells lubricants in India and operates retail stations across five states in the country.

The company’s subsidiary BG Exploration and Production India owns a 30% interest in the Panna – Mukta oil and gas fields offshore Mumbai.