'Simplicity' is Hiranandani's new FSRU mantra
With messianic zeal, H-Energy chief Darshan Hiranandani stresses the under-construction Jaigarh LNG project will herald a new era of simplicity in the sector.
"I want to do away with 200-page agreements and sign only two sheets!" Hiranandani told this report at his third floor office in the Olympia building at Powai in Mumbai. "We want to simplify the gas trading market and make it more flexible." Under Phase-I, said Hiranandani, H-Energy has committed $300m to set up a FSRU with up to 4m t/y capacity at the JSW Jaigarh Port in Maharashtra plus a 60-km gas pipeline to transport R-LNG to Dabhol.
Phase-II, he adds, will be a land-based LNG terminal of up to 8m t/y capacity. "I don't want customers signing long-term agreements," stresses Hiranandani.
"There won't be any take or pay conditions in our contracts. Whether customers want gas for 15 days, one month or three months we will supply it to them and offer simple clean transactions." Instead of getting entangled in messy paperwork, H-Energy wants to sign one-time master framework agreements using the merchant terminal model.
H-Energy will initially bring in up to 1m t/y LNG which will be ramped up based on demand. "We would be happy to sign one or two-year contracts if customers want this," adds Hiranandani.
To transport R-LNG, H-Energy says it will use GAIL's transportation network. It has previously supplied customers with R-LNG bought from BPCL.