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Informist, Tuesday, Mar. 18, 2025

 

--Sources: HPCL Gujarat LNG terminal to begin commercial operations from Apr

 

By Sunil Raghu

 

AHMEDABAD - Hindustan Petroleum Corp. Ltd. is set to begin commercial operations at its recently commissioned liquefied natural gas terminal at Chhara in Gujarat early April, sources told Informist. The state-owned oil marketing company has bought an LNG tanker at $12.8 per million british thermal units through a tender floated last week and is due for arrival on Apr. 2.

 

"HPCL terminal received commissioning cargo in January. It is also connected to the pipeline for evacuation of this LNG, which too had seen multiple delays, paving the way for commercial operations from next month," a senior state government official said.

 

The commercial operationalisation of an LNG project signifies the transition from construction to beginning of full-scale operations, a senior energy department official said. India has set a goal to boost natural gas's share in its energy mix to 15% by 2030 from 6.7% in December 2023.

 

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. Last April, HPCL tried to commission the terminal but could not do so due to a mishap while berthing an LNG tanker.

 

With the commercial operations beginning at Chhara, it would now 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. 

 

HPCL LNG has also signed a gas transmission agreement with Gujarat State Petronet Ltd. to provide connectivity through a 36-inch pipeline. Through this pipeline, HPCL would be able to transport natural gas from Chhara LNG terminal to markets in west and north of India. This pipeline, too, is now completely ready and connected to the terminal, after series of delays. As for Gujarat State Petro, official said that it would likely get about INR 700,000 to transport 1 million standard cubic metres per day.

 

At 1428 IST, the shares of HPCL traded 1.1% lower at INR 322 on the National Stock Exchange.  End

 

US$1 = INR 86.56

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

 

Edited by Akul Nishant Akhoury

 

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