H-Energy will commission first LNG retail outlet in Maharashtra by October 2019: Darshan Hiranandani
Energy, the oil and gas arm of Mumbai-based Hiranandani Group, is planning to commission its first LNG retail outlet in Panvel, Maharashtra in a year. The outlet, part of a larger expansion plan, will help the company sell gas from its Jaigarh LNG terminal located in Ratnagiri district in the state. “H-Energy will have its first LNG retail outlet in Panvel by October next year. We are trying for four more (outlets) but the Panvel facility will be up and running by next Diwali,” H-Energy Managing Director and Chief Executive Officer (CEO) told ETEnergyworld. The company is setting up the Jaigarh terminal in two phases. The first phase of the project – consisting of a jetty-based Floating Storage & Regasification Unit (FSRU) of 4 million tonne per annum (MTPA) capacity — is already operational. In the second phase, a land-based terminal of 8 MTPA capacity is being planned. H-Energy has also started work on laying a tie-in pipeline from Jaigarh to Dabhol which will carry regasified LNG from the terminal to the natural gas grid of GAIL (India). The 60 Km tie-in pipeline will carry re-gasified LNG to natural gas grid of GAIL in Dabhol. Hiranandani said the 60 Km tie-in pipeline is expected to be complete in two months, effectively kicking off operations by next year, and helping the company extend gas supply to natural gas consumers located in key demand regions. Also, the company is working on laying a 635 Km pipeline from Jaigarh to Mangalore, to connect to natural gas consumers in the east part of the country. “We are currently working with National Highways Authority of India (NHAI) as the alignment of the pipeline is along the highway. We have received Right of Use (ROU) from them. Their work and our work has to go in parallel. We are waiting for their processes to complete and, in the meantime, we will finish our processes. We are hoping to start work in June next year,” Hiranadani said. He also informed the work on the second LNG terminal being planned to be set up by the company at Digha in West Bengal is likely to start in December. That project will be based on a mixed model with both floating and on-land facility for LNG regasification. The company’s investment plan of around Rs 4,500 crore for setting up the LNG terminals and the pipelines is on track, Hiranandani said. Petronet LNG Ltd (PLL), the country’s largest importer of natural gas, is also planning to launch around 20 LNG fuelling stations on a 4,000-Km route between Delhi and Thiruvananthapuram as part of a larger plan being worked upon with oil marketing companies and state road transport authorities of Rajasthan, Gujarat and Kerala. PLL expects around 2 lakh trucks to run on LNG every year in the near future. LNG, a cleaner option than conventional fuels, is seen to provide 30-40 per cent lower running costs.