India's Chhara LNG terminal to start operations by Oct

  • : Natural gas
  • 24/05/10

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.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/06/19

Gas necessary for Asia, unwise not to invest: Summit

Gas necessary for Asia, unwise not to invest: Summit

Singapore, 19 June (Argus) — Asia's LNG market faces many uncertainties, but not continuing to invest in it would be unwise as it is necessary for economic growth, said speakers at the Association of Energy Negotiators' International Energy Summit in Bangkok, Thailand last week. Many countries are increasingly focusing on batteries and renewables as part of their energy transition plans to move away from fossil fuels, but batteries are still far from being commercially attractive from a cost perspective, said Andrew Kirk, vice-president of origination, LNG at conglomerate B Grimm. Batteries may be able to provide a stable solution to the intermittency challenges posed by renewables in some regions, but wealthier countries are failing to acknowledge that developing countries cannot accept the higher costs involved, as well as the massively daunting task of building and installing the required capacity, he said. "We have to separate the aspirational from the unachievable," said Kirk. There is already instability resulting from gas shortages even in more developed economies such as Australia, where the Australian Energy Market Operator has projected a shortage in southern states. The federal government has confirmed the need for a pro-upstream approach in its future gas strategy , and intends to bring on line new gas supplies and make them affordable during the transition. "The timeline we have given ourselves is starting to look disorderly," said Kirk, with reference to net zero targets. Advancements and breakthroughs in battery technology will be made, but the timeframe for this cannot be defined. If policymakers do not consider reversing declining gas production, the next 10-15 years will create more geopolitical uncertainty, he said. Billions of dollars have been spent on current energy systems, said Steve Morrell, senior vice-president of ExxonMobil PNG LNG, adding that it would make more sense to put more gas into the system considering the higher cost of moving to renewables, he added. "Just by replacing coal [with gas], we'll see a 60pc decrease in emissions without any need for breakthrough technologies." said Morrell. If too much emphasis is placed on renewable energy, this will also lead to declining investment in finding new oil and gas resources, said the executive director of the Petroleum Institute of Thailand, Kurujit Nakornthap, which could lead to energy shortages and more volatile energy prices. "The stone age [ended] not because we ran out of stone, so the oil age is not going to [end] because we're running out of oil," said Nakornthap, paraphrasing a famous quote by ex-Saudi oil minister Sheikh Zaki Yamani. Challenges faced by buyers, sellers Gas projects are already at risk of not receiving funding because the current LNG market outlook is unclear, with short-term price volatility, rolling blackouts, power reduction, and uncertainty in supply affecting buyers and sellers, said Morrell. The whole system is very tight at the moment, added Morrell, and alleviating this is dependent on customers, suppliers and governments as LNG is fundamental to global prosperity. But as a buyer, it is difficult to commit to multi-billion dollar long-term sales and purchase agreements (SPAs) when it is uncertain what the regulatory framework is going to be for the next 5-15 years. The tightness in supply indicates a need for more LNG, which in turn implies there is a need for more projects requiring multi-million dollar investments and that are looking for 20-year offtakes. Gas projects need 4-5 years of construction time and can produce for about 20 years. With an uncertain demand outlook and no buyers to take the product, investment decisions cannot be made and projects cannot get off the ground, said Morrell. "Customers are searching for price signals and trying to plan ahead," said Morrell. But he questioned "if they can't plan six months ahead, how are they going to know 15-20 years ahead?" The changing LNG model Buyers also cannot commit to long-term projects if they cannot predict what the energy transition entails, if certain fuels or greenhouse gas (GHG) intensity reductions get mandated, and how that will change the LNG business model. "The [LNG] market is always changing," said Morrell, with the introduction of carbon pricing to encourage GHG reductions creating further uncertainty for buyers and sellers. There are three areas within the current LNG model that will evolve, said Kirk. There are going to be many new buyers in emerging markets as they turn to LNG as a transition fuel. Secondly, the affordability of low-emission LNG may be an issue because some markets are unable to afford the extra costs when they are struggling to even move from a coal to gas-based market. Thirdly, SPAs will evolve and contracts must change to become more flexible. So buyers and sellers need to "act in good faith", said Kirk. But governments and regulators can slow down developments, which can be frustrating for suppliers, said Morrell. There needs to be a realisation that the consumer is paying for incentives and subsidies that the government provides, he said, adding that discussions should move away from 3–5-year political cycles and look at 20 years in the future. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Tropical storm warning for South Texas coast: Update


24/06/18
24/06/18

Tropical storm warning for South Texas coast: Update

Updates with closure of Galveston, Texas City ports. New York, 18 June (Argus) — A tropical storm warning has been issued for parts of south Texas and northeastern Mexico, bringing with it the risk of heavy rainfall and flooding. The warning is in effect for the Texas coast from Port O'Connor south to the mouth of the Rio Grande, as well as the northeastern coast of Mexico, according to the National Hurricane Center. "The disturbance is very large with rainfall, coastal flooding, and wind impacts likely to occur far from the center along the coasts of Texas and northeastern Mexico," the center said overnight. Maximum sustained winds this morning remained near 40 mph and the disturbance is forecast to become a tropical storm by Wednesday. The system has been classified as a potential tropical cyclone by the center since it has not yet become better organized, but is expected to become the first named storm system of the year by early Wednesday. The port of Corpus Christi in South Texas and the Houston Ship Channel remained open as of Tuesday morning, but the nearby ports of Galveston and Texas City closed to inbound and outbound shipping traffic at 10pm ET Monday due to heavy weather, the US Coast Guard said. The system was expected to disrupt ship-to-ship transfer operations off the Texas coast as of Monday evening because of heavy seas. In the Gulf of Mexico, the transfer typically is from an Aframax or Suezmax onto a very large crude carrier (VLCC) at designated lightering zones near Corpus Christi, Galveston and Beaumont-Port Arthur. Prolonged lightering delays can prevent crude tanker tonnage from becoming available and exert upward pressure on freight rates, while also adding to demurrage fees. The storm is expected to turn towards the west-northwest and west tonight and Wednesday, with the system forecast to approach the western Gulf coast late Wednesday, the NHC said. Rainfall totals of 5 to 10 inches are seen across northeast Mexico into South Texas, with maximum totals of 15 inches possible. Flash and urban flooding are likely to follow with river flooding. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Tropical storm warning for South Texas coast


24/06/18
24/06/18

Tropical storm warning for South Texas coast

New York, 18 June (Argus) — A tropical storm warning has been issued for parts of South Texas and northeastern Mexico, bringing with it the risk of heavy rainfall and flooding. The warning is in effect for the Texas coast from Port O'Connor south to the mouth of the Rio Grande, as well as the northeastern coast of Mexico, according to the National Hurricane Center. "The disturbance is very large with rainfall, coastal flooding, and wind impacts likely to occur far from the center along the coasts of Texas and northeastern Mexico," the center said overnight. Maximum sustained winds this morning remained near 40 mph and the disturbance is forecast to become a tropical storm by Wednesday. The system has been classified as a potential tropical cyclone by the center since it has not yet become better organized, but is expected to become the first named storm system of the year by early Wednesday. The system was expected to disrupt ship-to-ship transfer operations off the Texas coast as of Monday evening because of heavy seas. In the Gulf of Mexico, the transfer typically is from an Aframax or Suezmax onto a very large crude carrier (VLCC) at designated lightering zones near Corpus Christi, Galveston and Beaumont-Port Arthur. Prolonged lightering delays can prevent crude tanker tonnage from becoming available and exert upward pressure on freight rates, while also adding to demurrage fees. The storm is expected to turn towards the west-northwest and west tonight and Wednesday, with the system forecast to approach the western Gulf coast late Wednesday, the NHC said. Rainfall totals of 5 to 10 inches are seen across northeast Mexico into South Texas, with maximum totals of 15 inches possible. Flash and urban flooding are likely to follow with river flooding. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Shell buys Singapore LNG firm Pavilion Energy


24/06/18
24/06/18

Shell buys Singapore LNG firm Pavilion Energy

Singapore, 18 June (Argus) — Shell has bought from state-controlled investment firm Temasek the Singapore-based LNG firm Pavilion Energy, which currently has about 6.5mn t/yr of term contracted supplies. The deal is expected to be finalised by next year's first quarter, subject to regulatory approvals and fulfilment of other conditions, Shell said on 18 June. Financial details of the acquisition were undisclosed. Pavilion's term LNG supplies come from producers including Cheniere's 11.5mn t/yr Corpus Christi liquefaction facility in the US, the 22mn t/yr Bonny export terminal in Nigeria and Norway's 4.2mn t/yr Hammerfest export terminal. The firm also operates in the LNG bunker market, tracking the growing number of LNG bunker vessels operating in Singapore. It supplied over 16-17 February the dual-fuel bulk carrier Mount Api with LNG through the firm's 12,000m³ Brassavola LNG bunkering vessel. The Pavilion acquisition puts Shell in a position to capitalise on the growing LNG bunkering market. Demand for LNG as a bunker fuel in May at the port of Singapore touched a record high of 48,800t, on par with biofuels, according to the Maritime and Port Authority of Singapore. Pavilion Energy and Shell each hold one term LNG import licence for Singapore, granted by regulator the Energy Market Authority. The other two licence holders are ExxonMobil and Singapore's Sembcorp Fuels. By Rou Urn Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japex takes control of Norway-focused upstream venture


24/06/17
24/06/17

Japex takes control of Norway-focused upstream venture

Tokyo, 17 June (Argus) — Japanese upstream firm Japex has acquired a majority stake in Longboat Japex from London-listed independent Longboat Energy to take full control of the Norwegian oil and gas joint venture. Japex spent $2.5mn to buy the 50.1pc stake, which will completed during July-September this year, Japex said. It bought a 49.9pc stake in Longboat Japex from Longboat Energy in May last year, with the UK firm last year looking to raise extra funds through asset sales, farm-down deals or issuing new equity. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more