H-Energy serious about Kolkata FSRU project

Vol 19, PW 3 (08 Oct 15) Midstream & Downstream

Any doubts about H-Energy’s commitment to set up a FSRU off Kolkata can be laid to rest.

Last month (September) the Hiranandani-promoted company submitted a Rs26.30cr ($4m) performance bank guarantee to Kolkata Port Trust signaling its determination to move forward. On August 10 H-Energy and Texas-based partner Excelerate Energy received a LoA from Kolkata port authorities to set up a FSRU with a 1m t/y minimum guaranteed throughput capacity.

The two companies signed a non-binding MoU in August this year and have since begun work on FSRU design and installation, subsea pipeline, landfall facility and project cost. “All the paperwork and formalities are completed,” confirms a H-Energy source.

If H-Energy meets the deadline set by Kolkata port authorities the FSRU will be operational by August 2019 - or 48 months from the LoA date. “That’s plenty of time,” adds H-Energy.

“Different teams are working on the FSRU, subsea pipeline, landfall facility and two pipelines to Orissa and Bangladesh border.” If gas demand rises, says H-Energy, FSRU capacity will be scaled up from 1m t/y in line with environment ministry permission received in December 2014 that allows maximum 8m t/y.

H-Energy has also received environment ministry permission to lay a 115-km subsea pipeline to bring gas to shore at Petua in West Bengal and construct an onshore gas receiving facility. H-Energy applied for an 8m t/y capacity FSRU so it wouldn’t have to return to the ministry when scaling up.