Sources say that India's HPCL will start a LNG terminal by the end of the year and seeks a long-term supply.
Three sources claim that India's Hindustan Petroleum Corp. (HPCL) has been in discussions with eight to nine companies about a long-term LNG supply.
HPCL built the sixth LNG import terminal in India at Chhara, located in western India. New Delhi is trying to increase the use of cleaner fuels. It was the bad weather that prevented the company from commissioning the plant earlier this year.
Two sources stated that the company intends to use the three month window of fair weather, which begins in November, to commission the LNG Terminal.
Sources said that the terminal and its infrastructure, including the pipeline connectivity for LNG sales, is complete. The plan is to commission it in December or January.
One source said that HPCL, the state-owned company, received a "good response" when it expressed interest in LNG supplies over a 15-year period. One LNG cargo is sought per month, starting in late 2026 or early 2020. The price will be Brent-linked.
According to the first source, HPCL received bids from 7-8 players.
One source said that HPCL is eager to be supplied by traders such as Shell, TotalEnergies, and Vitol.
The three sources refused to identify themselves as they weren't authorised to talk to the media.
Shell declined to make a comment. HPCL, TotalEnergies, and Vitol didn't immediately respond to comments.
HPCL announced in July that it was looking for LNG deals, as it expected to open its Chhara terminal before the end of the year. The LNG will be used to meet the needs of its two refineries, as well as a new 180,000 barrels-per-day (bpd), refinery and project in Rajasthan.
Two sources also said that Gujarat State Petroleum Corporation and Torrent Power, an Indian utility, were looking for long-term LNG supply starting in 2026 or 2027.
Torrent Power wants a 10-year deal to supply 1 million tons of coal per annum, while GSPC wants a 15-year deal to supply 0.5 mtpa.
Torrent Power and GSPC were not available for comment. Reporting by Emily Chow and Nidhh Verma from Singapore; editing by Barbara Lewis
(source: Reuters)
