Informist, Tuesday, Apr 23, 2024

--Sources: Commissioning of HPCL Gujarat LNG terminal delayed

--CONTEXT: HPCL LNG unit aimed to start ops as 1st cargo arrived Apr 11

--Sources: HPCL Gujarat LNG terminal ops delayed due to recent mishap

--Sources: HPCL Gujarat terminal saw mishap in 1st LNG ship berthing

--Sources: Start of HPCL LNG terminal ops now seen delayed by 2-3 mos

--Sources: HPCL LNG unit's 1st cargo to be diverted due to ops delay

--Sources: GSPC floats tender to sell LNG in ship at Chhara, Gujarat

By Sunil Raghu

AHMEDABAD - Hindustan Petroleum Corp Ltd has been forced to defer the upcoming commissioning of its long-awaited liquefied natural gas terminal at Chhara in Gujarat due to a minor mishap while berthing the first LNG ship that had arrived at its port earlier this month, sources in the know told Informist. The commissioning, which was originally slated to take place six-seven years ago, could now be delayed by about three months, they said.

"During the berthing process, someone initiated the emergency shutdown procedure, which detached the LNG tanker from the berth. When they tried to berth the LNG tanker again, two of the fenders on the berth, which provide cushion to berthing ships got damaged," a senior state government official said. "One of the flanges of the delivery point of the ship also got damaged."

At 1400 IST, shares of HPCL traded 1.2% lower at 485.95 rupees on the National Stock Exchange.

On Apr 5, Informist had exclusively reported that the Chhara terminal was set to receive its first LNG cargo, which would be followed by the terminal's commissioning by early May. On Apr 12, Informist had reported the arrival of the first cargo, LNG tanker Maran Gas Mystras, at Chhara from the Punta Europa port of Equatorial Guinea. This LNG was to be used to help commission the terminal at Chhara, 11 years after the company got the nod to set up a 5-mln-tn per annum LNG terminal, the first one for the public sector energy major.

A senior official, a shipping industry veteran, said that as per the information available, it could take HPCL over a month to be able to berth any ship at Chhara. "If more than one of the fenders has been damaged, it points to a larger damage, perhaps even to the jetty. And if the flanges have got damaged, it definitely appears to be a serious issue," the official said on the condition of anonymity.

Another senior state government official said the commissioning had "failed" and had now been postponed by at least two-three months. "The process to divert the LNG cargo standing outside Chhara terminal has already begun and the tender has already been floated. Most probably, Gujarat State Petroleum Corp Ltd, which had brought the commissioning cargo at Chhara, will take it to Mundra LNG terminal," the official said.

Officials at Hindustan Petroleum could not be contacted for their views on the development.

Chhara's greenfield LNG terminal, storage and regassification facility had been awarded to state-owned Hindustan Petroleum's wholly-owned subsidiary HPCL LNG Ltd and its partner Shapoorji Pallonji group in the year 2013. The 50:50 joint venture was named HPCL Shapoorji Energy Pvt Ltd. In 2021, Hindustan Petroleum bought out Shapoorji Pallonji Group's stake, as the latter had run into financial troubles. The venture was then renamed HPCL LNG Ltd. Hindustan Petroleum currently holds 100% equity in the project.

When commissioned, the Chhara facility will be the fourth LNG terminal in Gujarat. The state currently has Petronet LNG Ltd's 17.5 mtpa terminal at Dahej, global energy major Shell-owned 6.8 mtpa terminal at Hazira, and Gujarat State Petroleum Corp-owned 5 mtpa capacity LNG terminal at Mundra. Another LNG terminal, of 5 mtpa capacity, is being constructed at Jaffrabad by Swan LNG Ltd. End

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

Edited by Ranjana Chauhan

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