HPCL wants FSRU for LNG at Chhara

Vol 17, PW 12 (30 Jan 14) Midstream & Downstream

Hindustan Petroleum wants to accelerate its entry into the LNG sector by setting up a Floating Storage and Regasification Unit (FSRU) at Chhara in Gujarat.

This month (January) HPCL and JV partner Shapoorji Pallonji completed an in-house study on a 2.5m t/y to 3m t/y FSRU. The pair originally signed an agreement in July 2013 to build a 5m t/y LNG terminal for Rs5411cr ($862m) and began environmental studies last September.

But HPCL believes an FSRU, set up in two or three years, might be a quicker option than a land-based terminal, which can take five years or more to commission. “HPCL is entering the LNG sector late," says an industry source.

"It wants to make up for lost time. A FSRU is the right option.

” HPCL was planning to begin construction of the land-based terminal end-2014, but if the company chooses a FSRU it will probably work on the land terminal. “Initial investments in time and money will be less," we hear.

"A FSRU will also give HPCL an idea about R-LNG demand." When contacted HPCL said: "It's up to our top management to take a call (on which option to go for).

" HPCL's proposed FSRU will use a deepwater port developed separately by Shapoorji Pallonji at the site.