Singapore-based Atlantic, Gulf and Pacific Company (AG&P) is in talks to acquire majority stake in Hiranandani Energy (H-Energy) “for a few hundred crores of rupees,” reported Economic Times (ET) citing two industry sources knowledge with the development.
AG&P is in deliberations to acquire 70% stake in H-Energy and one of its subsidiaries while Darshan Hiranandani will own the remaining 30% interest.
The first source was quoted by ET as saying: “AG&P plans to buy 70 per cent in H-Energy and one of its subsidiaries as it is looking to expand its LNG and CNG operations in India.”
Earlier, Hiranandani Energy unveiled plans to build two LNG terminals and a pipeline for end-to-end natural gas solutions.
H-Energy planned to invest $3bn to build the two LNG terminals – one in Jaigarh, Ratnagiri, Maharashtra and the second, a floating LNG import terminal, off Haldia, West Bengal.
However, the plans did not proceed as envisaged due to on-ground and financial challenges.
H-Energy is expected to develop only two projects. These include the 56km R-LNG pipeline from Jaigarh port to Dabhol which is linked to the national gas grid, and a jetty at Jaigarh Port in Ratnagiri district of Maharashtra.
The proposed jetty will be designed to berth a floating storage and regasification unit (FRSU).
In India, AG&P has been looking at LNG terminals on the country’s east and west coasts in order to increase operations by 2024–2025, according to the sources.