H-Energy to kick-start LNG project in June
The Hindu Business Line , Jan 09, 2019
Hiranandani Group-promoted H-Energy is executing a ₹3,700-crore project to import and distribute LNG in West Bengal, and export the same to Bangladesh. Work should start from June/July.
The first phase of the project includes setting up of a re-gasification terminal at Kukrahati in the Purba Medinipur district of West Bengal, at an estimated cost of ₹1,500 crore over a 47-acre plot.
The other part entails setting up of a pipeline - worth ₹2,200 crore - from Haldia to the India-Bangladesh border, and a smaller city gate station on the outskirts of Kolkata for supply of city gas. According to Darshan Hiranandani, MD and CEO, H-Energy, the construction work, expected to begin June-July this year, should be completed over the next 18 months.
Supply to Bangladesh
“We have decided on a model that will have transloading at Paradip, and from there the gas will be brought via smaller vessels to the re-gasification terminal at Kukrahati for faster execution,” he told reporters on the sidelines of a FICCI-organised seminar here.
Re-gasification is a process that converts liquefied natural gas at -162°C temperature back to natural gas at atmospheric temperature.
LNG gasification plants can be located on land as well as on floating barges.
“We have also got court clearance to go ahead with the gas supply line to Bangladesh. Construction work will begin shortly.”
The terminal will have an initial capacity of three million tones per annum, and can be ramped up depending on demand to 5 million tonne per annum.
The company intends to execute the LNG project in phases.
H-Energy currently has a two million tonnes per annum long-term supply contract with Bangladesh. Supply to Bangladesh too will start at 0.5 million tonne per annum, and later scaled up. The remaining will be used for city gas projects in West Bengal.
According to Hiranandani, H-Energy will be importing its LNG from Malaysia with transloading facilities being offered at Paradip in Odisha.
H-Energy, he said, is expected to start full commercial operations at Jaigarh (in Maharashtra) later this year.
The 60-km pipeline - built at a cost of ₹400 crore and expected to be operational May onwards - connects the four-million tonne per annum (mtpa) terminal at the port of Jaigarh to the national gas grid at Dabhol.
The terminal is a floating storage and re-gasification unit (FSRU) and is built at a cost of ₹1,665 crore.