Excelerate signs MoU with H-Energy for FSRU

Vol 18, PW 18 (07 May 15) Midstream & Downstream

Mumbai-based H-Energy is exploring the possibility of laying a 705-km gas pipeline network in eastern India amid heightened expectations it is about to receive a LoA to set up a Floating Storage and Regasification Unit (FSRU) off Kolkata.

Speaking to PETROWATCH company director Darshan Hiranandani confirms Kolkata Port Trust opened the company's sole bid on March 16 for the Rs5000cr ($800m) FSRU project and is likely to issue the LoA any day. In February H-Energy signed a non-binding MoU with Texas-based Excelerate Energy for the supply of a 4m t/y FSRU.

“It won’t be an old, decommissioned LNG tanker," confirms Hiranandani, "but a new FSRU from their fleet.” H-Energy wants to transport R-LNG from the FSRU through a 115-km subsea pipeline to shore at Petua in West Bengal, where it has acquired land to set up a receiving facility.

From Petua R-LNG will feed into a 705-km coastal pipeline network to Paradip, Cuttack and Bhubaneshwar in Orissa, Kolkata, Haldia, and Uluberia in West Bengal and Dattapulia on the border with Bangladesh. When laid this pipeline network will carry 14.4m cm/d R-LNG.

In March H-Energy applied for PNGRB authorisation, expected to take six months. Hiranandani says the FSRU as well as the pipelines will be on offer to any company that wants to import gas to supply gas-starved eastern India.