Chhara LNG terminal next in line for take-off
HPCL subsidiary HPLNG has begun scouting for an LNG cargo to commission its 5m t/y Chhara terminal.
When ready, the Chhare LNG terminal will take India's LNG import capacity to 52.5m t/y. "Once Chhara is commissioned in the second half of 2023, it will be India's eighth LNG terminal and the fourth on the Gujarat seacoast," boasts a Gujarat energy department source.
"All that's left is work on the breakwater and the R-LNG evacuation pipeline." With Chhara, Gujarat's LNG receiving capacity will increase to 32.5m t/y, accounting for almost 62% of India's LNG storage and regasification capacity, we hear.
"They (HPLNG) have started scouting for a commissioning cargo and are in talks with several suppliers," adds our source. "HPCL is lucky; it's about to enter the market when spot prices are below $15/mmbtu."
To date, HPCL has not landed a single cargo in India on its own. Since October 31 (2020), when HPCL brought its first cargo shared with steel maker AMNS and Shell Energy, it has landed 11 shipments - two at Hazira and nine at Dahej.
All 11 have been shared with city gas retailer Adani-Total Gas, AMNS and Shell. Toyo Engineering has completed Chhara's regasification facilities, costing Rs1490cr ($181.55m).
IHI with Afcons has completed two 200,000 cubic metre capacity storage tanks, costing Rs1200cr ($146.2m). Also constructed by Afcons for Rs1000cr ($121.8m) is the 1.2-km jetty, set to receive LNG tankers ranging from 80,000 to 266,000 cubic metres capacities.
"The total LNG storage and regasification capacity in India at present is 42.5m t/y," we hear. This includes six operating LNG terminals, of which Dahej at 17.5m t/y is the largest.
Five other terminals can each process 5m t/y each: Hazira, Dabhol, Kochi, Ennore and Mundra. With the commissioning of Adani-Total's 5m t/y Dhamra LNG terminal, expected on or after May 15 (2023), total Indian capacity will rise to 47.5m t/y, rising again to 52.5m t/y after Chhara is commissioned.