Indian natural gas company H-Energy Pvt Ltd expects its liquefied natural gas (LNG) import terminal at Jaigarh to start operations in the first quarter of 2020, Rahul Tiwari, H-Energy’s senior LNG trader,told a conference on Thursday.
The terminal, which is a floating storage and regasification unit (FSRU), and will be India’s first, has been delayed on several occasions, with the previous deadline the fourth quarter this year.
Tiwari told Reuters on the sidelines of the CWC LNG conference in Rome that the launch is now expected in the middle of next quarter.
He added that the terminal is expected to be predominantly used for term supply, with occasional spot cargoes, adding that the launch of the terminal will not create additional spot demand in India immediately.
The global LNG market has been oversupplied in the past year, with current spot prices at record lows for winter, but the low price has pushed some Indian buyers on the market to procure cheap LNG.
Tiwari said that stable purchases from Indian buyers will continue on subdued prices, but additional demand is unlikely as Indian regasification terminals are already running at full capacity.
H-Energy’s trading office in Dubai signed a sale and purchase agreement with Malaysia’s Petronas in 2018 for the delivery of LNG to the Jaigarh terminal.
The terminal is planned to be capable of handing 4 million tonnes per year.
“We are planning to start easy,” Tiwari said about the amount of LNG supplies to the terminal.Share This