India’s Hindustan Petroleum plans to launch Chhara LNG terminal by October

India’s Hindustan Petroleum, a unit of state-owned ONGC, aims to launch its delayed Chhara LNG import terminal in Gujarat by October this year, according to its management.

LNG Prime reported on April 15, citing shipping data, that the 2015-built 159,800-cbm, Maran Gas Mystras, has arrived at the 5 mtpa LNG terminal in the Chhara port on April 11.

Prior to that, Maran Gas Mystras picked up a cargo of LNG at Marathon Oil’s Punta Europa LNG terminal in Equatorial Guinea.

However, the LNG carrier did not unload this commissioning shipment at the facility. Instead, the vessel delivered the shipment to Petronet LNG’s Dahej terminal, according to its AIS data provided by VesselsValue.

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 but the expected completion date is not available.

The company’s executives discussed the commissioning of the Chhara LNG facility during HPCL’s 2023-24 results call on May 10.

An unidentified official told analysts during the results call that the cargo could not be unloaded due to the “rough sea and the swell beyond the permitted limits.”

HPCL found an alternate buyer and sold the cargo to other parties.

The failure to unload the cargo was “not because of any mechanical infrastructure issue” at the Chara terminal because all the required facilities are completed, and this was “primarily due to the weather,” the official said.

HPCL would be able to take the commissioning cargo after this monsoon season ends “sometime in September in October,” the official said.

India’s eighth LNG import facility

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 said that the pipeline which connects the terminal has also been 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.

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