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Essar Energy

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Essar Energy was a Mauritius-based energy company associated with India’s Essar Group, with businesses in electricity generation, petroleum refining, and oil and gas exploration.

Last updated August 31, 2026

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History

Essar Energy’s origins lay in the Essar Group’s energy activities. The business was established in 1998 as a wholly owned unit of the Indian conglomerate, initially providing a corporate structure for investments in power and petroleum. Over time, its portfolio developed around the combination of electricity generation, fuel refining, and exploration and production assets. The power portfolio was concentrated in India, particularly Gujarat and other industrial regions. It included the 515 MW gas-based Hazira plant, the 1,010 MW Vadinar captive thermal facility, the 500 MW Bhander plant at Hazira, and the 1,200 MW Salaya coal-fired plant. The company also owned or operated the 85 MW Algoma thermal plant in Ontario, Canada. The Mahan project in Madhya Pradesh had a planned capacity of 1,200 MW, with one unit functional in the reference material. Other projects, including Hazira-2, Tori in Jharkhand, and Paradip in Odisha, were described as not yet operational. Across six plants, the installed generation capacity was stated as approximately 3,910 MW. Petroleum became the other major pillar of the business. Essar Energy was associated with Essar Oil, which operated the Vadinar refinery in Gujarat. The refinery was described as having annual capacity of 18 million metric tonnes and as one of India’s largest refining facilities. The group also held an 86% interest in a joint venture with Reliance Petroleum. Upstream interests included onshore and offshore Indian petroleum rights, a coalbed methane block, and exploration and production positions in Nigeria, Vietnam, Australia, Indonesia, and Madagascar. In June 2012, the company received final forest approval connected with development of a coal mine in Indonesia, supporting its broader fuel-supply and energy-infrastructure strategy. Essar Energy moved from private group unit to public company in April 2010, when it listed on the London Stock Exchange. The offering raised about £1.3 billion and was characterized as the exchange’s largest initial public offering since December 2007. Essar Global Fund Limited retained an approximately 76% holding. The company entered the FTSE 100 Index at the next quarterly review, giving the Essar Group a prominent listed energy vehicle in London. Ravi Ruia, the group’s chairman, and Sanjay Mehta, a senior board member of Essar Global Limited, were identified in contemporary reporting as influential in the listing. The listed phase was followed by portfolio changes and ownership consolidation. In 2013, Essar Energy announced plans to dispose of its 50% stake in Kenya Petroleum Refineries Limited to the Kenyan government. In May 2014, Essar Global Fund Limited acquired the rest of Essar Energy, ending its independent public-market ownership. The reference material describes the acquisition as taking place when the fund was already the majority shareholder. The company’s later financial position became the subject of reporting in September 2021. The Sunday Times reported that Essar Energy was engaged in urgent talks with HM Revenue and Customs to prevent collapse. On 29 September, the company reached an agreement with HMRC. The supplied sources do not provide enough information to determine the company’s subsequent legal or operating status, nor do they establish a current executive team or a continuing public listing.

  • 2021

    Agreement with HM Revenue and Customs

    [1]

    After reported urgent discussions concerning the company’s financial position, Essar Energy reached an agreement with HMRC on 29 September.

  • 2014

    Acquisition by Essar Global Fund

    [1]

    Essar Global Fund Limited acquired Essar Energy in May, consolidating control of the previously listed company.

  • 2013

    Planned disposal of Kenya refinery stake

    [1]

    The company announced the sale of its 50% interest in Kenya Petroleum Refineries Limited to the Kenyan government.

  • 2012

    Indonesian coal-mine forest approval

    [1]

    Essar Energy received final forest approval for development of a coal mine in Indonesia.

  • 2010

    London Stock Exchange listing

    [1]

    The company floated on the London Stock Exchange in April, raising approximately £1.3 billion and later joining the FTSE 100 Index.

  • 1998

    Energy business established within Essar Group

    [1]

    Essar Energy originated as a wholly owned energy business unit of the Essar Group.

Products and positioning

An integrated energy group combining thermal power generation with petroleum refining and upstream oil and gas interests.

  • Petroleum refining

    Vadinar refinery

    Located in Gujarat, the Vadinar refinery was operated by Essar Oil and formed the central petroleum asset associated with Essar Energy. The reference material describes it as having annual refining capacity of 18 million metric tonnes and as one of India’s largest refineries.

  • Electricity generation

    Thermal power generation portfolio

    Essar Energy’s generation portfolio comprised gas-fired, coal-fired, and captive thermal plants. Facilities were located mainly in India, with an additional thermal plant in Ontario, Canada. Six plants were described as providing approximately 3,910 MW of installed capacity.

  • Upstream oil and gas

    Oil and gas exploration interests

    The company held Indian onshore and offshore exploration and production rights, a coalbed methane block, and international interests in Nigeria, Vietnam, Australia, Indonesia, and Madagascar.

  • Coal-fired power generation

    Essar Mahan Power Plant

    The Mahan project in Singrauli district, Madhya Pradesh, was planned at 1,200 MW across two 600 MW units. The supplied reference states that one unit was functional.

  • Coal-fired power generation

    Essar Salaya Power Plant

    The Salaya facility in Gujarat was described as a 1,200 MW coal-based plant consisting of two 600 MW units. It supported the company’s industrial power-generation portfolio.

Brand decisions

  • 2014

    Take-private acquisition by Essar Global FundM&A

    Background

    Essar Global Fund Limited already held approximately 76% of Essar Energy and sought to consolidate ownership.

    Action taken

    The majority shareholder acquired the remaining interests in May 2014.

    Aftermath

    Essar Energy ceased to operate as an independently listed London company.

  • 2013

    Sale of Kenya Petroleum Refineries interestM&A

    Background

    Essar Energy reviewed its ownership of Kenya Petroleum Refineries Limited as part of its portfolio management.

    Action taken

    The company announced that it would sell its 50% stake to the Kenyan government.

    Aftermath

    The supplied material does not state the final transaction value or completion details.

  • 2010

    Public-market listing in LondonOther

    Background

    Essar Group converted its energy business into a separately listed vehicle to raise capital for its power and petroleum portfolio.

    Action taken

    Essar Energy completed an initial public offering on the London Stock Exchange in April 2010.

    Aftermath

    The offering raised approximately £1.3 billion, and the company was added to the FTSE 100 Index at the subsequent quarterly review.

    IPO proceeds. £1.3 billion (April 2010)

Sources2 sources

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