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Mumbai-based Hiranandani Group outfit H-Energy expects to place an order for India’s first offshore LNG terminal near the West Bengal coast, and start construction of the trunk pipeline to supply gas to Bengal, Bangladesh and Odisha, this year.
Earlier this month, the company was declared the lowest bidder (in terms of transmission cost of the gas) to build and operate the 705-km trunk pipeline from Contai (Medinipur, West Bengal)–Duttapulia (Bengal-Bangladesh border)–Paradip (Odisha) natural gas pipeline by the Petroleum and Natural Gas Regulatory Board (PNGRB).
At the thumb rule cost of ₹4 crore a km, the trunk pipeline will cost ₹2,820 crore.
Including another 200-odd km of spur lines, the total cost of the pipeline project will near ₹3,600 crore. It will also connect the 10 million tonne LNG terminal of Adani Group at Dhamra port.
Both Dhamra and H-Energy LNG projects are expected to start operations in early 2020.
Tying up consumersH-Energy will build the 119-km pipeline from the Contai coast to the industrial city of Haldia in the first phase, by end-2019.
Large LNG carriers will off-load cargo directly into the floating storage and re-gasification unit (FRSU), for on-ship degasification and supply. Excelerate Energy of the US will have 26 per cent stake in the FRSU project. Order for the ship is expected to be placed end of this year for delivery within 24-28 months.
H-Energy is also in an advanced stage of negotiation for tying-up long-term LNG supply and sales contracts.
Among prospective buyers is a proposed gas-based power plant at Khulna, in Bangladesh.
Sources say many Haldia-based industries, currently using liquid fuel or feedstock, are also in negotiation with H-Energy to take advantage of the current low in LNG prices through long term purchase contracts.
Meanwhile, work is moving on schedule to set up H-Energy’s R-LNG project at JSW’s Jaigarh port in Maharashtra. Unlike on the Bengal coast, the FRSU will here be anchored at the port.
The company will also build a trunk pipeline that will connect Dhabol (60 km) and Mangaluru nearly 700 km in the South.
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