HPCL plays catch-up with Chhara LNG plans

Vol 17, PW 6 (17 Oct 13) Midstream & Downstream

Chhara is little more than a sleepy Gujarat village near the Arabian Sea.

But that’s going to change in the next few years as Hindustan Petroleum and privately-owned construction company and partner Shapoorji Pallonji set up a bustling 5m t/y LNG terminal. Nagpur-based National Environmental Engineering Research Institute (NEERI) began collecting field data in September for the mandatory Environment Impact Assessment study, a first step towards securing environment ministry clearance.

“The study should be completed by next July,” says a source. HPCL has also begun work to select a consultant to prepare the FEED report.

“By the time the EIA study is completed,” says a JV source, “a limited tender for the FEED will be issued to consultants (like Foster Wheeler, Technip and Tractebel).” The JV wants to issue construction tenders in September 2014 so the terminal can be completed by December 2017 or early 2018.

Chhara will cost around Rs5400cr ($888m), of which Rs1600cr ($263m) will be equity equally contributed by both partners and the rest loans from banks and financial institutions. Chhara will have two 185,000 cubic metre LNG storage tanks and two bays to load trucks with LNG supplied to customers by road.

In water depth of up to 20 metres, HPCL and Shapoorji believe Chhara is a good location because it won’t need dredging.

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