India’s Hindustan Petroleum, a unit of state-owned ONGC, is working to secure long-term liquefied natural gas supplies for its delayed 5 mtpa Chhara LNG import terminal in Gujarat, according to its management.
Asked about the LNG sourcing strategy during HPCL’s quarterly earnings call on Tuesday, finance chief Rajneesh Narang said “we are already in the market for tying up long-term gas from international players.”
He said that HPCL would be undertaking commissioning activities the Chhara LNG import terminal in November or early December.
This depends on the weather conditions at the site, Narang said.
In April this year, the 2015-built 159,800-cbm, Maran Gas Mystras, arrived at the 5 mtpa LNG terminal in the Chhara port with a cargo from the Punta Europa LNG terminal in Equatorial Guinea.
However, the LNG carrier did not unload this commissioning shipment at the facility due to the “rough sea and the swell beyond the permitted limits.”
Instead, the vessel delivered the shipment to Petronet LNG’s Dahej terminal.
HPCL’s management said during the company’s previous quarterly call in May that the company expects to commission the Chhara facility by October this year after this monsoon season ends.
Also, HPCL has not yet completed the breakwater for the LNG facility to protect it during the monsoon season which typically lasts from June to September.
Simar Port is building these facilities.
Narang said during the call on Tuesday “maybe at the end of the next weather season the breakwater would be in place.”
He said that “around 1000 meters of the breakwater is already completed and around 800 meters more have to be done.”
Narang also noted that there is a “lot of interest” from parties who are willing to book regasification capacities at the LNG terminal.
HPCL will first commission the facility and then it will be signing the regasification agreements, he said.
HPCL LNG (HPLNG), a unit of HPCL, built the 5 mtpa LNG terminal with all associated facilities for receipt, unloading, storage, regasification of LNG, and gas supply to the grid.
The firm, formerly known as HPCL Shapoorji Energy Private Limited (HSEPL), was incorporated as a 50:50 joint venture between HPCL and SP Ports Private Limited (SPPPL) on October 15, 2013.
However, HPCL purchased the 50 percent stake from SPPPL in March 2021, becoming the sole owner of the LNG import facility.
The LNG terminal features a 1.2 km long jetty capable of receiving carriers with a capacity of 80,000 cbm to 266,000 cbm, and two LNG storage tanks each with a capacity of 200,000 cbm, according to HPLNG.
HPCL previously said that the pipeline which connects the terminal was mechanically completed.
GSPL built the 42km long pipeline which stretches to Gundala and from there it is connected to the gas grid.
The Chhara LNG terminal is India’s eighth LNG import facility.
At the moment, India imports LNG via seven facilities with a combined capacity of about 47.7 million tonnes per year.
These include Petronet LNG’s Dahej and Kochi terminals, Shell’s Hazira terminal, and the Dabhol LNG, Ennore LNG, Mundra LNG, and Dhamra LNG terminal.
Take the Survey at https://survey.energynewsbeat.com/