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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 5 mtpa facility due to the “rough sea and the swell beyond the permitted limits,” HPCL previously said.
In July this year, HPCL said it was working to secure long-term LNG supplies for the facility, and the firm expected to start commissioning activities in November or early December.
“Right now, we will shortly be coming in the market to book the commissioning cargo. Last time in April we had brought a cargo, but we could not commission because the sea conditions became rough,” finance chief Rajneesh Narang said during HPCL’s recent earnings call.
He said that the company plans to bring the commissioning cargo in December
or January.
“Otherwise, we have got all the port approvals, the jetty and all, everything is in place, there is no issue. Only thing is we will have to bring the cargo and commission,” he said.
LNG volumes to gradually increase
Narang said that HPCL plans to utilize about half of the terminal’s capacity in the first couple of years to fuel its refineries and for LNG trucking.
“We have plans to scale up that facility also. We see there’s a lot of potential as regard LNG is concerned. And definitely, the capacity utilization will also keep on improving as we go ahead,” he said.
Narang also answered a question regarding long-term LNG contracts for the facility.
“We will be tying up for our requirements because this terminal is a 5 mtpa terminal. I told you that we have a plan to reach 2.5 mtpa in the next two years and I need to show a contract that much quantity only then I can be there,” he said.
“So, we will be gradually phasing our procurement plans in line with our business plan to increase the LNG volume,” he said.
He said HPCL is “already in the market as regards long-term sourcing is concerned.”
“And the response has been quite good,” he said.
Breakwater not completed
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 the breakwater is about 1,900 meters long.
“Now out of that 1,900 meters, 1050 meters have already been done. And the balance also, it has reached 4 meters, below the water level. Up to that place, it has been done,” he said.
“Now with the fair-weather season starting effective October, the work will shortly start over there for completing the balance part,” he said.
“We are hopeful that in this fair-weather season, the same should be completed,” he said.
India’s eighth LNG import facility
HPCL LNG (HPLNG), a unit of HPCL, built the 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.