HPCL-backed Chhara LNG terminal delayed

Vol 18, PW 26 (27 Aug 15) Midstream & Downstream

Hindustan Petroleum’s proposed Chhara LNG terminal in Gujarat is moving ahead despite delays with its Front End Engineering and Design (FEED) study.

PETROWATCH learns Engineers India (EIL) is expected to submit the completed FEED study in early September (next month) though it was meant to have completed the job by December 2014 after winning it in February 2014. “FEED work is nearing completion,” confirms a source at Shapoorji Pallonji, HPCL’s partner in the Chhara project.

In preparation HPCL is preparing to hold a public hearing in November to clear the Rs5411cr ($814m) terminal as it soon expects to receive the EIA report from Nagpur-based NEERI (National Environmental Engineering Research Institute). “NEERI is preparing the report,” we hear.

“But it will be ready soon.” The report will cover the details of the HAZOP (Hazard and Operability) analysis, project layout, connectivity and carrying capacity of pipelines and safety compliance.

NEERI also prepared an EIA report in August 2012 for the ongoing Hazira expansion from 5m t/y to 7m t/y. HPCL and Mumbai-based Shapoorji Pallonji set up a 50:50 JV on July 31, 2013 to set up the Chhara terminal.

Shapoorji owner Pallonji Shapoorji Mistry is the father of Tata chairman Cyrus Mistry. Shapoorji Pallonji received an LoI from the Gujarat Maritime Board in 2008 to develop Chhara port.

HPCL chose to partner it as it would have a readymade location for its proposed LNG project.