India’s HPCL receives bids to lease part of Chhara LNG terminal

India’s Hindustan Petroleum Corp Ltd HPCL.NS has received six or seven bids from industrial companies to lease part of its Chhara liquefied natural gas (LNG) import terminal on the west coast, the chief executive of the LNG entity said on Monday.

HPCL intends to commission the terminal with a planned capacity of 5 million tons per year (tpy) in the December quarter, K Sreenivasa Rao told reporters at an event.

“We’ve received six or seven offers and we should be able to decide on the award in the next three months,” Rao said.

He added that HPCL wanted to lease a capacity of 3 million tons per year to other companies for a period of more than 10 years.

The terminal was completed in March, but its commissioning has been delayed because a 40 km (25 miles) pipeline connection to an existing network intended for consumer sales is not ready, Rao said.

“We hope that the 40 km pipeline will be ready very soon.”

The terminal will be running at about 30% of its capacity in 2024 and reach full capacity in four to five years, he said, adding that HPCL has also made arrangements to double capacity to 10 million tons per year in the future.

India is expanding its gas infrastructure as Prime Minister Narendra Modi aims to increase the share of natural gas in its energy mix from around 6.5% currently to 15% by 2030.

India’s gas demand is picking up now as prices have fallen after a surge that had dampened demand, Rao said.

Related Articles

Back to top button