India’s first LNG import terminal, based on an floating storage and regasification unit (FSRU), will begin operating in March, following the delivery of Höegh Giant by Höegh LNG Holdings Ltd in Q1 2021
Höegh LNG is supplying the FSRU under a 10-year agreement with Western Concessions Private Limited, a wholly owned subsidiary of H-Energy. The FSRU will be deployed at H-Energy’s LNG regasification terminal project, located at Jaigarh Port in Ratnagiri district of Maharashtra, India.
Built in 2017, Höegh Giant has a storage capacity of 170,000 m3 and has a peak regasification capacity of 750 mmscfd (about 6.0 mta). The FSRU will deliver regasified LNG to the 56 km Jaigarh-Dabhol pipeline connecting to the National Gas grid and will also deliver LNG onshore for LNG truck loading facilities. The FSRU is also capable of reloading LNG onto other LNG vessel’s for providing bunkering services.
Upon the delivery of the FSRU, H-Energy will commission its Jaigarh project in March 2021, making it India’s first FSRU-based LNG regasification terminal.
Commenting on the deal, Höegh LNG president and CEO Sveinung J.S. Støhle said H-Energy’s LNG import project would be “a timely gateway to one of the world’s highest growing LNG markets.” He added: “The terminal will be the first of what we believe could be multiple FSRU-based terminals in India.”
H-Energy’s Jaigarh LNG terminal is also constructing truck-loading bays to deliver LNG by tanker truck to its customers. Underpinning the India government’s policy of expanding the use of gas as a transportation fuel, H-Energy further plans to develop L-CNG fuelling stations across India.
In announcing the agreement and the commission date for the Jaigarh project, H-Energy CFO Darshan Hiranandani said: “The Government of India and the Petroleum and Natural Gas Regulatory Board have taken several positive steps recently, including unified tariff and city gas distribution open access, which will result in a multi-fold increase in the utilisation of natural gas in India. We are confident that H-Energy will establish its presence as an efficient, economic and customer-focussed LNG value chain player in India.”