India is seeking to acquire the initial shipment for its newest liquefied natural gas (LNG) terminal as part of its ambitious plan to boost the consumption of this fuel significantly this decade, according to Bloomberg.
Gujarat State Petroleum Corp. has released a bid to purchase a commissioning cargo for the Chhara terminal, scheduled for delivery in April, traders with knowledge of the matter told Bloomberg.
Developed by Hindustan Petroleum Corp. in Gujarat state, this terminal will have the capability to import 5 million tonnes of LNG annually.
To increase the proportion of natural gas in its energy mix to 15 per cent by 2030 from the current 7 per cent, New Delhi is actively working to improve its LNG import capabilities.
This effort aims to reduce dependence on more environmentally damaging fossil fuels such as coal and oil.
Currently, India depends on seven terminals for LNG imports. In addition to the Chhara facility, Swan Energy Ltd.’s Jafrabad import facility is expected to begin operations this year, according to BloombergNEF.
However, operational challenges are anticipated at the Chhara facility in 2024 due to the monsoon season, as tankers cannot unload cargo in rough seas, individuals familiar with the situation disclosed. To address this issue, construction of a breakwater facility, designed to protect the harbour from wave impact, is expected to be completed by April 2025, allowing for increased imports, as stated by one of the sources.
