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Indias state-owned HPCL to commission Chhara LNG terminal by December 2023

India’s third largest state-owned refining major HPCL is set to commission its 5 mil mt/year Chhara LNG terminal by December 2023. According to HPCL official, company has received around six proposals to lease the capacity of the terminal from different companies. The decision to award the capacity of around 3mil mt/year from total 5mil mt/year will be taken in another three months.

The terminal has achieved mechanical completion early this year but around 40 km long pipeline, connecting the LNG terminal with national gas grid has not yet been completed. HPCL management is hopeful of commercial commissioning of the terminal during the last quarter of 2023.

Back in March 2021, HPCL had acquired remaining 50% stake in the LNG terminal project from its partner Shapoorji Pallonji group and turned the Chhara LNG project its 100% subsidiary.

The LNG terminal is designed to run on a tolling basis where off-takers have the choice to book capacity on a 'take or pay' basis, source and re-gasify LNG, pay regasification charges, and sell the regasified LNG to end consumers.

HPCL, along with its joint venture companies, has presence in CGD business in 21 Geographical Areas (GA) covering 9 states in the country. HPCL on its own operates 1100 CNG stations as on March 2022 which it plans to expand further. It is also foraying into setting up of LNG dispensing stations.