- Chhara LNG Terminal Boosts India’s Energy Security Goals.
- HPCL’s New LNG Terminal Ready for Commercial Operations.
- INR 47.50 Billion Investment Powers 5 mtpa Chhara LNG Terminal.
India’s Hindustan Petroleum Corporation Limited (HPCL), a subsidiary of Oil & Natural Gas Corporation (ONGC), has successfully received its first liquefied natural gas (LNG) cargo at the newly developed terminal at Chhara Port in Gujarat. The first cargo was delivered onboard the LNG carrier Maran Gas Coronis, which berthed at the terminal on January 6, 2025. The LNG was then transported to onshore storage tanks on January 12, 2025, reports Offshore Energy.
Building Energy Security for India
Chhara LNG Terminal will contribute much to enhancing energy security in the country. The terminal helps meet the country’s target of reaching 15% share of natural gas in the energy mix by 2030. The terminal is slated to begin its commercial operations in a short period from now, thus being an important event in the Indian energy infrastructure.
Capacity and Investment
The terminal boasts a storage and regasification capacity of 5 million tonnes per annum (mtpa), with plans for expansion to 10 mtpa. Approximately INR 47.50 billion (around $0.55 billion) has been invested in the project, which includes facilities for receiving LNG via ocean tankers, marine unloading, storage, LNG road tanker loading, regasification, and supply to the gas grid.
Operational Model and Third-Party Usage
HPCL LNG (HPLNG) will operate the terminal through a tolling model, wherein third-party users can make use of the terminal through long-term capacity booking contracts and master regasification agreements for spot cargoes. In 2021, HPCL purchased its partner’s share in the terminal, gaining complete ownership.
Main Infrastructure Features
The LNG terminal has state-of-the-art infrastructure for its use:
- Storage Tanks: IHI Corporation has built two fully contained above-ground LNG storage tanks of 200,000 cubic meters each. These are the largest in India.
- Unloading Facilities: The cargo jetty can accommodate LNG carriers with capacities from 80,000 to 266,000 cubic meters. A 1.2-kilometre-long jetty with unloading arms and pipelines facilitates the transfer of LNG to storage tanks.
- Road Tanker Loading Facility: A facility for loading LNG into tank trucks is under construction, enabling transport to smaller LNG stations.
- Phase 2 Expansion: Future plans include constructing an additional jetty to enhance the terminal’s capacity.
Recent LNG Developments in Gujarat
Another big LNG development in Gujarat has been the commissioning of HPCL’s Chhara LNG terminal. In late December 2024, Nebula Energy’s AG&P had signed a Heads of Agreement (HOA) with Swan Energy Limited (SEL) to form an LNG logistics venture in India. It also includes an interest in the 10-mtpa Swan LNG regasification terminal.
Commissioning the Chhara terminal reiterates India’s commitment towards LNG infrastructure enhancement and energy security with a potential future energy requirement.
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Source: Offshore Energy
