Hiranandani Energy to deliver its first gas by 2017

First cargo to be brought at Jaigarh in Ratnagiri that will be fifth LNG import terminal on west coast

Hiranandani Energy, energy arm of real estate firm Hiranandani Group, is planning to deliver four million tonnes LNG to domestic consumers in next four years. The company will bring in its first cargo of LNG at Jaigarh, Ratnagiri, Maharashtra, by the end of next calendar year or early 2018. 

"We are hoping to start delivering gas from our Jaigarh terminal by the end of next year or early 2018," said Darshan Hiranandani, Managing Director, Hiranandani Group of Companies.

Once operational, this will be the fifth LNG import terminal on the west coast. The west coast already has four LNG import terminals including: Dahej and Hazira in Gujarat; Dabho in Maharashtra and Kochi in Kerala. Jaigarh also houses the 5 million tones Dabhol LNG terminal operated by gas utility Gail India Limited. 

H-Energy, is building two LNG terminals in the country at the cost of $3 billion: one in Jaigarh and second, a floating LNG import terminal off Haldia, West Bengal.
 

The terminals are tolling terminals, but H-Energy could also import gas for the Indian market, said Hiranandani. Tolling terminals allow third party to import LNG for conversion to natural gas for a fee paid to the operator. 
 

"While it is a tolling terminal, we have agreements to pick up gas and deliver the same for our customers in power and fertilizers. We have signed an agreement with three power players," said Hiranandani. 

The company would be picking gas up from players who have portfolio supply. 

H-Energy has signed a large contract with a US-based company which wants to bring their own gas through its terminal. First year it would have two million tonnes per annum (MTPA) through its Jaigarh terminal which it will slowly ramp up. 

Hiranandani said he thinks these are exciting times for natural gas as gas prices are down and the company thinks it can deliver gas for $7.5 per mBtu.  

While the Jaigarh terminal would have a throughput capacity of 4 MTPA by 2017, it will go up to 8 MTPA by 2020. The project i 40 per cent complete currently. 

On the Haldia terminal, the company says it spent a large part of last year getting a 700 kilometer onshore pipeline approved.

"We are hoping to get a resolution on the pipeline by next month so the process on getting the pipeline tariff setting etc will be completed by March-April 2016 and once that happens, we should be able to start construction work on our overall project which is the floating LNG terminal, offshore pipeline and the land based pipeline by the first quarter of next fiscal," Hiranandani added.