Essar wants to import more LNG through Hazira

Vol 20, PW 15 (20 Apr 17) Midstream & Downstream

Shell and Total might be worrying about one day losing Reliance as Hazira's biggest customer but the good news is Essar is planning to import all its near-term cargoes at the south Gujarat terminal.

An Essar source confirms it is scouting for term LNG in addition to more spot imports. "So far we've imported four (spot) cargoes," he says.

"Two shared with GSPC and two brought in independently. Now we're looking for a short or medium-term deal and eventually we want a long-term deal with cargoes landing at Hazira." Essar last received a 140,038 cubic metre cargo at Hazira on April 13, sourced through Shell-affiliate SITME from Nigeria LNG, aboard Bermuda-flagged tanker River Niger.

Essar previously landed a cargo at Hazira on March 13, imported from the Fos Cavaou liquefaction facility in France. Can Essar one day break Reliance's dominance at the Hazira terminal? In 2016, of 60 cargoes that landed at Hazira Reliance brought in a staggering 40 or 67%.

Fifteen were for GSPC, including two shared cargoes; Torrent Power landed three and one each was brought in by Shell and GAIL. Similarly from January 1 to April 15, 2017 Hazira received 13 spot cargoes of which Reliance accounted for 10.

Of the remaining three, two were sourced by Essar and one by Hazira LNG.