Informist, Friday, Apr 5, 2024

--Sources: HPCL's Gujarat LNG terminal to be commissioned by May

--Sources: First LNG tanker to call on HPCL LNG terminal on Apr 12

--Sources:Gujarat Petro pipeline links HPCL LNG to mkts in west, north

By Sunil Raghu

AHMEDABAD - Hindustan Petroleum Corp Ltd's greenfield 5 mtpa liquefied natural gas terminal in Chhara, Gujarat, which has been in the making for over a decade, is set to receive its first liquefied natural gas tanker next week, three officials in the state government's energy and ports department told Informist. This means the LNG terminal may finally be commissioned by April-end or the beginning of May.

HPCL LNG Ltd, the wholly-owned subsidiary of oil major HPCL, has developed the liquefied natural gas storage and regasification terminal at Chhara, the terminal part of which is now ready to receive stock.

The LNG terminal was awarded to HPCL and its partner Shapoorji Pallonji group in 2013 and the company has since been trying to build and commission the project. The project could not take off owing to several challenges related to construction and finance. Later, Shapoorji Pallonji group exited the project, making it a wholly-owned subsidiary of HPCL from Mar 31, 2021. In November, HPCL indicated that the terminal would be commissioned around February.

"Last month, Gujarat State Petroleum Corp Ltd contracted the commissioning LNG cargo to global energy player Vitol. The LNG tanker is slated to arrive at Chhara on Apr 12," a senior state government official said. "The commissioning would take place within two to three weeks of arrival of the first LNG tanker at Chhara."

Chhara would be the fourth LNG terminal to become operational in Gujarat. The state already has Petronet LNG Ltd's 17.5 mtpa terminal at Dahej, global energy major Shell-owned 6.8 mtpa LNG terminal at Hazira, and Gujarat State Petroleum Corp-owned 5 mtpa capacity LNG terminal at Mundra. Another LNG facility, a 5 mtpa terminal by Swan LNG Ltd, is under construction at Jaffrabad.

HPCL LNG has signed a gas transmission agreement with Gujarat State Petronet Ltd to provide connectivity through a 36-km pipeline from Chhara to Pipavav. Through this, HPCL would be able to transport natural gas from the Chhara LNG terminal to markets in India's west and north. Gujarat State Petro's Pipavav pipeline is connected to the gas grid in the state and to the Mehsana-Bhatinda pipeline.

Gujarat State Petro has completed work on connecting the terminal with an 18-inch pipeline, another official told Informist. "This connects Chhara terminal to the main 36-inch pipeline located a few kilometres away," he added. "The 18-inch pipeline will be required to be converted to a 36-inch pipeline eventually."

While the terminal may be commissioned, it may face disruptions during the monsoon, as the breakwater part of the project is not yet ready. "The work on 1,950-mtr breakwater to make it an all-weather facility is still on going and should be completed before monsoons in 2025," another official said.

Breakwater is a permanent structure constructed at a distance, generally opposite the port or berths, to protect them against strong currents, waves, storm surges, and tides. This helps a port or berth to remain operational round the year, especially during the monsoon.

At 1516 IST, shares of HPCL were steady at 462 rupees on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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