India's Chhara LNG terminal again delays commissioning

Indian state-run HPCL has further delayed the commissioning of its 5mn t/yr Chhara LNG import terminal to November-December, depending on weather conditions, a company official said during an investor call on 30 July.

This is the second delay this year after the firm failed to unload a 160,000m³ commissioning cargo from the Maran Gas Mystras carrier in April because of sea swells above the permissible limit, the company said in its May call. The vessel was left stranded for over a week as it could not moor because of rough weather and the lack of a breakwater at the terminal, a source close to the matter told Argus. The distressed cargo was later bought by Indian state-controlled refiner IOC.

The latest delay at Chhara could be extended further, considering the troubles that HPCL has faced, traders said.

HPCL had said in May that the terminal was expected to be commissioned in October.

The facility is currently closed owing to the monsoon and HPCL is also building the breakwater, which is required to ensure safe tanker berthing during the rainy season. The firm expects to complete the work by the next fiscal year starting in April 2025, it said today.

Once commissioned, regasified LNG from the terminal will be transported along a 40km pipeline to Gundala village in Gujarat, which connects to gas transport firm Gujarat State Petronet's distribution network.

The firm aims to sign long-term LNG contracts with international suppliers as it aims to feed regasified LNG to its own refineries, the firm said, adding that its captive gas use is around 1.5mn t. This would be beyond the LNG requirements of other firms booking import vessels to be unloaded at the terminal.

Chhara LNG was initially expected to be commissioned in September 2022. The terminal is the country's eighth LNG import facility, and will lift total regasification capacity to 52.7mn t/yr from 47.7mn t/yr once operational.

By Rituparna Ghosh