India's Chhara LNG terminal to start operations by Oct

Indian state-run refiner Hindustan Petroleum (HPCL) will start up its 5mn t/yr Chhara LNG import terminal by October, a company official said in an investor call today.

This follows commissioning delays after the firm faced difficulty in unloading its first cargo last month. The 160,000m³ Maran Gas Mystras vessel failed to unload at the terminal because of a "swell in the rough sea beyond permittable limit," the official added.

The facility is set to be closed from 15 May-15 September because of the monsoon season. The firm will be ready to receive LNG cargoes from October as its pipeline that begins at the terminal and stretches over 40km to Gundala village in Gujarat is now complete, the official said. The pipeline is further connected to Gujarat State Petronet's city gas distribution network to Somnath district, a total stretch of 86.6km.

The LNG vessel that arrived in mid-April at the terminal was left stranded for over a week as it could not achieve mooring mode after berthing, because of inclement weather and the lack of a breakwater facility at the terminal, a source close to the matter told Argus.

Rough weather and sea conditions caused the vessel to hit the fenders, resulting in damage. Almost five loading arms were also broken before the whole operation was abandoned on 18 April, the source added.

The fender acts as a buffer or cushion between the ship hull and the dock, and prevents damage as a result of contact between the two surfaces.

HPCL is building a breakwater facility at the terminal which is required to ensure safe LNG tanker berthing during India's monsoon season. No specific timeline has been given for building the breakwater, but the terminal will be able to operate year-round once it is completed.

Indian state-controlled refiner IOC brought in the distressed vessel through a tender seeking approximately 80mn m³ of regasified LNG for delivery to the 17.5mn t/yr Dahej terminal at around $8.40/mn Btu on a des equivalent.

HPCL also has not awarded a tender that is seeking another early-May delivery cargo, which closed on 19 April.

Commissioning of the Chhara LNG terminal has been delayed since September 2022 owing to pipeline issues. The terminal is the country's eighth LNG import facility, which would lift total regasification capacity to 52.7mn t/yr from 47.7mn t/yr currently.

By Rituparna Ghosh