India’s H-Energy has lined up Hoegh LNG’s floating storage and regasification unit Hoegh Giant for its grassroots Jaigarh liquefied natural gas import project on India’s west coast.
H-Energy said it had entered into a binding commitment with Oslo-listed Hoegh to charter the FSRU for a 10-year term, with delivery of the vessel scheduled for the first quarter of 2021.
The project operator now envisages commissioning the LNG receiving and regas facility — India’s first FSRU-based terminal — in March next year.
"The construction of H-Energy’s [Jaigarh] LNG import project is near to completion, positioning it as a timely gateway to one of the world’s highest growing LNG markets,” Hoegh chief executive Sveinung Stohle said last month.
“The terminal will be the first of what we believe could be multiple FSRU-based terminals in India."
The 2017-built Hoegh Giant has storage capacity of 170,000 cubic metres and peak regasification capacity of 750 million cubic feet per day (equivalent to about 6 million tonnes per annum).
The FSRU will deliver regasified volumes to the 56-kilometre Jaigarh-Dabhol pipeline connecting to India's National Gas grid and will also deliver LNG onshore for LNG truck loading facilities.
The FSRU is also capable of reloading LNG on to other LNG vessels to provide bunkering services.
H-Energy added that it has further plans to develop L-CNG stations across India to enhance the use of LNG and compressed natural gas as transportation fuel, contributing to the environment in line with government policy.
“We are very happy to have partnered with an experienced player like Hoegh, this will enable the Jaigarh project to start delivering first gas by March 2021,” said H-Energy chief executive Darshan Hiranandani.
“The government of India and the Petroleum & 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 use of natural gas," he noted.
H-Energy is investing up to $2 billion to develop LNG regasification terminals and cross-country pipelines on the west and east coasts of India.
The company also has an LNG trading and shipping company in Dubai for the sourcing and trading of LNG.