India’s H-Energy is forging ahead with its Kakinada liquefied natural gas import project on India’s east coast, writes Amanda Battersby.

H-Energy, through wholly owned subsidiary East Coast Concessions Private Ltd, has signed a port service agreement (PSA) with Kakinada

Seaports Ltd (KSPL), which has the concession for Kakinada Deep Water Port from the State Government of Andhra Pradesh.

The Indian contractor plans to develop an LNG receiving and regasification hub at Kakinada Port.

This facility will not only supply customers in the state but also deliver volumes by small LNG vessels to its future Kukrahati terminal in West Bengal and also to neighbours Bangladesh and Myanmar.

“H-Energy is excited to partner with Kakinada Seaports for our east coast project,” said H-Energy chief executive Darshan Hiranandani.

“We believe that Kakinada with its existing breakwater and deep draft combined with its close proximity to various natural gas pipelines makes this an efficient and successful project for our customers, our partners, and ourselves.”

H-Energy said the PSA, along with its associated agreements, envisages a long-term association with KSPL that would contribute towards India’s growth story, especially the government’s vision to promote a gas-based clean economy.

The Indian player last week signed a memorandum of understanding with Russia’s Novatek that encompasses long-term LNG supplies to India, joint investment in H-Energy’s LNG terminals and in Novatek’s liquefaction projects such as Arctic LNG 2.

The two companies will also set up a joint venture to market LNG and natural gas from Novatek’s portfolio to customers in India, Bangladesh and other markets.

Looking ahead, H-Energy and Novatek will endeavour to work together on future LNG projects, midstream assets such as reloading and regasification terminals, cross-country pipelines, and small scale LNG and L-CNG infrastructure.

H-Energy is targeting operational start-up before the end of the year from its Jaigarh LNG import project in Maharashtra on the west coast, which is India’s first FSRU.

Weekly

H-Energy to push at Kakinada