H-Energy Pvt Ltd (HEPL) has requested the Centre to extend the proposed 2,539-km Jagdishpur-Haldia and Bokaro-Dhamra pipeline (JHBDPL) by 80 km to evacuate gas from the company’s proposed LNG terminal off the Bengal coast. The pipeline project, which will connect vast areas of UP and the entire eastern India, proposes sourcing gas from as far afield as the west coast and the CBM fields of Reliance in MP.

Plea to ministry

In recent communications to the Petroleum and Natural Gas Ministry, H-Energy argued that extending the pipeline by 80 km from Kolkata to Contai can add a second source. The only east coast source now mentioned is the proposed LNG terminal at Adani-run Dhamra port in Odisha.

The estimated ₹12,940 crore (approximately $1.9 billion) pipeline is built with 40 per cent (₹5176 crore) viability gap funding from the Centre.

H-Energy pointed out that whenever a new source of R-LNG (regassified-LNG) had been established, be it Dahej or Dhamra, GAIL has extended the gas grid to the terminal.

“In our opinion, the new source at Contai (landfall point for gas from H-Energy’s offshore terminal) in West Bengal deserves to be treated in the same manner,” says the communication from Darshan Hiranandani, managing director of H-Energy o the Ministry.

If the government agrees to the proposal, the transmission cost of supplying gas to Bengal will come down. The Ministry is yet to respond to the company.

Vital project

H-Energy’s terminal is vital for both gas-starved Bengal and western Bangladesh. The company has the backing of the West Bengal government and the Kolkata Port Trust. However, evacuation remains an issue.

Last year, the company proposed a Contai-Paradip and Contai-Duttaphulia pipeline project, which was spiked by the downstream regulator, Petroleum and Natural Gas Regulatory Board, citing viability concerns. The issue is now pending before a dispute settlement tribunal.

The Contai-Duttaphulia leg is aimed at supplying power plants in Bangladesh. Armed with an approval from the Ministry of External Affairs, the company has already entered a preliminary agreement with a prospective customer in the neighbouring country.

Theoretically, H-Energy can set up a dedicated pipeline for the Bangladeshi customer. But the viability of such a project is doubtful.

In November, the downstream regulator denied granting monopoly rights to state-owned GAIL for developing the gas grid and distributing city gas in the region. However, the government is insisting for the same.

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