New Delhi, March 4 (PTI): French energy firm Total will buy Royal Dutch/Shell’s 26 per cent stake in the $600-million Hazira LNG project in Gujarat. It will also supply gas to the country’s second liquefied natural gas (LNG) project.

“Shell Gas BV, a member of the Royal Dutch/Shell group, the largest private LNG supplier in the world, has agreed to the terms of Total Gaz Electricite Holdings France to take a 26 per cent share in the Hazira project,” Shell India said.

Though the value and terms of the deal were not disclosed, Total Gas & Power India managing director Jean-Pierre Junqua said Total will share 26 per cent of the project cost.

Total, which has equity in LNG projects in Adgas, Qatargas and Oman in West Asia and Indonesia and Nigeria, will supply LNG to the Hazira project.

“The gas could be sourced from existing LNG plants in West Asia and elsewhere,” he said.

The Hazira project includes a port and LNG import and regassification facilities with a capacity of 5 million tonnes per annum. In the first phase, a 2.5-million-tonne LNG terminal will be set up by 2004 and the capacity might be raised up to 10 million tonnes in future.

India, which received its maiden cargo of LNG in January-end at Petronet LNG Ltd’s Dahej terminal in Gujarat, is looking at supplementing natural gas deficit through the import of LNG.

Junqua said Total’s own LNG import project at Trombay in Maharashtra is being wound up.

“The Hazira project will offer a reliable supply of LNG at a competitive price. It also has the flexibility to meet customer requirements of contract duration and seasonality. It seeks to be the partner of first choice through these value propositions,” Junqua said.

A Shell India spokesperson said the Anglo-Dutch giant will remain the majority owner and operator of the Hazira terminal with a 74 per cent stake.

Total will take 26 per cent stake in each of the three companies comprising the project — Shell Hazira Gas Pvt Ltd, Hazira LNG Pvt Ltd and Hazira Port Pvt Ltd, subject to the approval of required state and Union government bodies.