- HPCL plans to commission its new LNG terminal by December or January 2024 after delays due to weather conditions.
- The company is in discussions with 8-9 firms for a long-term LNG supply deal starting in 2026 or 2027.
- Additional LNG supply deals are being sought by Torrent Power and Gujarat State Petroleum Corporation (GSPC).
Hindustan Petroleum Corp (HPCL) is looking to secure a liquefied natural gas (LNG) cargo by December or January to commission its new import terminal in western India. The terminal is part of New Delhi’s push to increase the use of cleaner fuel sources, reports Reuters.
India’s HPCL Eyes LNG Terminal Commission by December-January
HPCL’s 5 million metric ton per year (tpy) LNG import terminal in Chhara was delayed from April due to bad weather. The company now aims to commission the terminal in December or January during the fair weather window, according to sources.
HPCL is in talks with eight or nine companies to secure a long-term LNG supply deal, with plans to import one cargo per month starting from 2026 or 2027. These contracts would be linked to Brent crude pricing.
HPCL to Use Three-month Fair Weather Window for Terminal Launch
There was delay in terminal due to bad weather earlier in the year. HPCL now plans to take advantage of the fair weather window starting in November to complete commissioning.
The Chhara terminal will be India’s sixth LNG import facility, part of a broader strategy to increase clean energy imports. There is completion of its infrastructure and pipeline connectivity for LNG sales.
HPCL Shortlists Potential Suppliers After Strong Interest
HPCL received a strong response to its 15-year LNG supply tender, with over 20 potential suppliers shortlisted. The company has since floated a limited tender to finalize its LNG suppliers.
Major energy players like Shell, TotalEnergies, and Vitol have expressed interest in supplying LNG to HPCL. Seven to eight companies have sent offers, as per the ongoing tender.
Apart from HPCL, Torrent Power and Gujarat State Petroleum Corporation (GSPC) are also pursuing long-term LNG supply deals for 2026-2027, with Torrent Power seeking a 10-year deal and GSPC targeting 10-15 years of supply.
HPCL’s LNG Supply Target Set to Begin by 2026
HPCL is seeking LNG supplies starting from late 2026 or early 2027 to meet the requirements for its existing refineries and a new 180,000 barrels per day refinery project in Rajasthan.
The LNG supplies will support HPCL’s two existing refineries as well as its new refinery and petrochemical project in Rajasthan, marking a significant expansion of its clean fuel capabilities.
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Source: Reuters
