Russian gas producer Novatek and India’s H-Energy Global Ltd will collaborate on long-term LNG supplies to India, joint investment in the three LNG terminals being built by the Indian company and form a joint venture to market Novatek’s LNG in India, Bangladesh and other markets.
H-Energy, the energy unit of Mumbai-based real estate firm Hiranandani Group, will also work together in future LNG projects, mid-stream assets like LNG re-loading and re-gasification terminals, cross-country pipelines, small scale LNG and L-CNG infrastructure, according to a memorandum of understanding (MoU) signed between the two firms at the Eastern Economic Forum in Vladivostok, Russia on Wednesday.
“H-Energy is partnering with Novatek in Arctic LNG 2, to participate in and bring supplies to the downstream customers in India and Bangladesh through its terminals in Jaigarh, Kakinada, Haldia and its two pipelines from Jaigarh to Mangalore and Kannai Chatta to Shrirampur ensuring safe, reliable and economic supply chain from gas field to burner tip,” Darshan Hiranandani, CEO of H-Energy said in a statement after signing the MoU.
H-Energy is developing LNG re-gasification terminals at Jaigarh on the West Coast and at Kakinada and Kukrahati on the East Coast. The company is also involved in developing natural gas pipelines of more than 1,000 km connecting its LNG re-gasification terminals to the downstream gas markets in India.
H-Energy will start the commercial operation of its floating storage and regasification unit (FSRU) based LNG receiving terminal at Jaigarh port in Maharashtra by end of 2019 along with a 60 km natural gas pipeline to Dabhol.
The company is building an LNG re-gasification terminal at Kakinada in Andhra Pradesh which will also have LNG re-loading and break-bulk facilities; small LNG carriers will supply LNG from Kakinada to LNG re-gasification terminal at Kukrahati in West Bengal.
H-Energy is also building a 635-km natural gas pipeline from Jaigarh to Mangaluru which will connect gas customers in Maharashtra and Karnataka and a 242-km natural gas pipeline from Kanai Chhata to Shrirampur (at the India-Bangladesh border) which will supply re-gasified LNG to customers in West Bengal and Bangladesh. H-Energy has approval from the Petroleum and Natural Gas Regulatory Board of India to develop the India-Bangladesh natural gas pipeline.