H-Energy scraps Jaigarh LNG terminal
H-Energy has scrapped plans to set up a land-based LNG terminal at Jaigarh in Maharashtra and is instead planning to hire a 3m t/y FSRU.
A H-Energy team left for London on September 17 for negotiations with Golar, GdF, Hoegh LNG, Flex LNG and Mitsui with a mandate to hire the FSRU by November for March 2018 deployment. The idea is to pipe R-LNG received onshore from the FSRU through a proposed 60-km pipeline to Dabhol and on through the Dabhol to Bangalore pipeline.
H-Energy reckons a FSRU will be much cheaper than a land-based terminal and has scrapped a $550m EPC contract awarded in October 2014 to a consortium of Sener and AFCONS. "Our capital costs will be much lower with a FSRU," says a source.
"For a company venturing into this business for the first time it's important to have cash flow fast and a FSRU will ensure that - unlike a land terminal." H-Energy says total capital costs for the FSRU will be around $200m including a jetty at Jaigarh and pipeline to Dabhol.
