Jaigarh LNG Terminal

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Jaigarh LNG Terminal is a floating storage and regasification unit (FSRU) liquefied natural gas (LNG) import terminal under construction in India.

Proposed Phase II of the project includes conversion to a land-based terminal.

Location

The terminal is proposed to be located at the Jaigarh Port, Maharastra, India.

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Project Details

Phase I

  • Owner: Western Concessions Private Limited[1]
  • Parent company: H-Energy[1]
  • Location: Jaigarh Port, Maharastra, India
  • Coordinates: 17.3040113,73.2061395 (approximate)
  • Capacity: 6 mtpa[1]
  • Status: Construction[2]
  • Type: Import
  • Start year: 2026[3]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Phase II

  • Owner: Western Concessions Private Limited[1]
  • Parent company: H-Energy[1]
  • Location: Jaigarh Port, Maharastra, India
  • Coordinates: 17.3040113,73.2061395 (approximate)
  • Capacity: 8 mtpa[1] (combined, Phase I and II)
  • Status: Proposed[1]
  • Type: Import
  • Start year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

H-Energy is setting up an LNG re-gasification project at Jaigarh Port in the State of Maharashtra. The project is to be implemented in two phases.[5]

Phase I

Phase I will consist of a jetty-based floating storage and regasification unit (FSRU) of approximately 4 mtpa capacity. Jetty construction began at the end of 2016 and the FSRU is expected to be commissioned in 2018. Engie of France will charter the FSRU for 5 years. H-Energy also plans a Jaigarh to Dabhol tie-in pipeline which will carry re-gasified LNG to the Natural Gas Grid of GAIL at Dabhol.[5]

In December 2020, H-Energy (through its wholly owned subsidiary Western Concessions Private Limited), entered into a binding contract with Höegh LNG Holdings Ltd. The contract is a 10-year agreement for the deployment of Höegh's existing floating storage and regasification unit (FSRU), named Höegh Giant, at H-Energy's existing LNG regasification terminal project in Jaigarh Port in Ratnagiri district of Maharashtra, India. The FSRU will be delivered to H-Energy’s Jaigarh project in March 2021.[6]

The Höegh Giant was built in 2017. It has a storage capacity of 170,000 m3 and a maximum regasification capacity of 750 million standard cubic feet per day (MMscf/d - approximately 6.0 million tonnes per year). The FSRU will deliver regasified LNG to the 56 km Jaigarh-Dabhol Gas Pipeline, connecting to the National Gas grid. It will also deliver LNG onshore for truck loading facilities. The FSRU is also capable of providing bunkering services. The FSRU will act as a supplement to the Jaigarh LNG Terminal. Upon the delivery of the FSRU, H-Energy will commission its Jaigarh terminal project in March 2021. This LNG terminal will become India’s first FSRU based LNG regasification terminal.[6]

In February 2020, the terminal was expected to begin operations in quarter two (Q2) of 2020.[7] In March 2020 it was reported that commissioning may be delayed due to travel and commercial restrictions imposed because of the Covid-19 pandemic.[8]

In April 2022, a few months after the vessel had arrived at Jaigarh Port, Hoegh LNG terminated its contract with H-Energy following “the charterer’s default of the contractual terms.”[9]

According to the 2023 GIIGNL report, released in July 2023, construction of various elements including the jetty, facility buildings, and the Jaigarh-Dabhol pipeline was completed in 2022. The terminal is still delayed following the cancellation of the contract with Hoegh's FSRU.[2]

In July 2023, industry experts reported that the terminal may see further delays due to tight supply globally for FSRU vessels and "tepid local LNG demand due to recently high and volatile prices". Additionally, it was reported that having terminated its 10-year FSRU charter with the Jaigarh LNG terminal, Hoegh LNG FSRU was expected to redeploy the vessel to a new European FSRU terminal later in 2023.[10]

The terminal's start year has been delayed from 2022 to 2025.[4]

Phase II

Phase II is expected to be implemented after the successful completion and stabilization of Phase I.[1] It includes a conversion to a land-based regasification terminal with an ultimate terminal capacity of 8 mtpa.[5]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Jaigarh LNG Terminal. H-Energy. Accessed June 2022.
  2. 2.0 2.1 GIIGNL. The LNG Industry: GIIGNL Annual Report 2023. July 14, 2023.
  3. IGU. 2024 World LNG Report. June 2024.
  4. 4.0 4.1 "GlobalData: India ranks second in LNG regasification capacity additions in Asia through 2027". LNG Industry. Dec 18, 2023. Retrieved Jun 14, 2024.{{cite web}}: CS1 maint: url-status (link)
  5. 5.0 5.1 5.2 "Project Overview," H-Energy, accessed Sep 2017
  6. 6.0 6.1 H-Energy committed FSRU contract to Höegh H-Energy, December 2, 2020
  7. India LNG buyers spoilt for choice as China woes create problem of plenty Hellenic Shipping News, February 26, 2020
  8. Covid-19 could delay progress of upcoming LNG regasification projects in 2020, Offshore Technology, Mar. 23, 2020
  9. "Hoegh LNG terminates FSRU charter with India's H-Energy". LNG Prime. 2022-05-26. Retrieved 2022-06-15.
  10. "India's commissioning of floating LNG storage terminals to face further delays". The Hindu Business Line. July 16, 2023. Retrieved Jun 14, 2024.{{cite web}}: CS1 maint: url-status (link)