Modi eyes Dhamra-Chhara
Narendra Modi will try to showcase his government's achievements when he inaugurates the Chhara and Dhamra LNG terminals ahead of general elections scheduled for April and May next year (2024).
"Inauguration ceremonies like these provide an ideal opportunity for the PM to show off his government's infrastructure development," says a source. "Five years ago, before the last general elections, he inaugurated two LNG terminals and dedicated them to the nation."
Our source speculates that the oil ministry must have already written to both HPCL (which operates Chhara in Gujarat) and Adani-Total (which operates Dhamra in Odisha) to prepare for the formal opening of these terminals. "By November or December, there will be a flurry of inaugurations," he predicts.
In the run-up to the April-May 2019 general elections, Modi inaugurated GSPC LNG's 5m t/y Mundra LNG terminal on September 30 (2018) and IndianOil's 5m t/y Ennore terminal on March 6 (2019). Before the Gujarat state elections from December 1 to 5 (2022), Modi led a symbolic ground-breaking ceremony for India's first CNG terminal at Bhavnagar on September 29 (2022), promoted by London-based but Indian-controlled Foresight Group.
At Chhara, HPCL subsidiary HPCL LNG, formerly HPCL Shapoorji Energy, has finally completed LNG terminal construction. "We achieved 'mechanical completion' of the storage and regasification facilities on March 28 (2023)," confirms a company source.
Japanese contractors Toyo set up the Rs1490cr ($182m) regasification facilities, while IHI, with Afcons, set up two 200,000 cubic metre capacity storage tanks. Afcons is a group company of former partner Shapoorji Pallonji which exited the LNG project on March 31 (2021) after financial difficulties and sold its 50% stake to HPCL for Rs397cr ($48m).
Our source adds Afcons has completed the 1.2-km jetty and that work is underway on breakwater construction. In September (2022), Gujarat State Petronet (GSPL) hired Mumbai-based Ace Pipeline Contracts to lay the much-delayed R-LNG evacuation pipeline connecting the Chhara LNG terminal to GSPL's 2703-km state-wide gas grid.
"Ace was meant to complete the first 40-km (to Gundala village) by June (2023)," we hear. "But there are delays."