OPI acquires majority stake in Shell Gas LPG

KARACHI: OPI Gas has announced that the company has purchased 68 per cent shares of Shell Gas LPG (Pakistan) Ltd for $8 million.

Both companies have entered into a sale-purchase agreement which transfers management control to OPI Gas (Pvt) Ltd.

“The agreement will further consolidate market share of OPI Gas in the local Liquefied Petroleum Gas (LPG) market. The LPG market will see further improvement in delivery and services of OPI following this deal,” said President Industrial Division, Hashoo Group, Khalid Mumtaz Malik at a press conference on Wednesday.

OPI Gas, an LPG marketing company, is a subsidiary of Hashoo Group.

“We are investing $8 million in purchasing Shell Gas LPG shares at a time when only few companies are investing in the country. This shows the commitment of our management to Pakistan,” Malik added.

He said that at present both OPI Gas and Shell Gas LPG have an equal market share of 25,000 tons annually but after this deal the share of OPI will increase. “There is growth potential in the LPG business,” said Malik.

He said that the deal is subject to regulatory approvals and will be implemented following a take-over offer process period of 60 days under the securities law.

When asked if the deal will help bring down LPG prices, Malik replied that OPI Gas does not regulate the prices. These are decided by Oil and Gas Regulatory Authority (Ogra) and OPI Gas, as an LPG distributor, only markets the fuel.

Power Gas, Jamshoro Joint Venture Limited and JS Private Equity Fund had also expressed interest in acquiring Shell Gas LPG.

Published in the Express Tribune, June 17^th, 2010.