H-Energy pens five-year FSRU deal with Engie

Hiranandani Group’s H-Energy signed an agreement with the French LNG player Engie to charter the FSRU GDF Suez Cape Ann. 

The company is set to start importing liquefied natural gas (LNG) in the third quarter of 2018, the company said in its statement on Tuesday.

The vessel with a storage capacity of 145,000 cubic meters has been chartered on a five-year contract, enabling the company to import up to 4 million tons of LNG per year.

The companies have an option to extend the charter party agreement beyond the initial term on mutual agreement, the statement reads.

H-Energy has entered into a port concession agreement with JSW Jaigarh Port and has awarded the contract for the construction of LNG jetty to JSW Jaigarh Port, and received clearance to build the jetty in December last year.

At the end of February, the company said the jetty construction works at the terminal started.

All necessary studies for port operation such as navigation simulation, quantitative risk assessment, etc. have been carried out to ensure safe mooring of the LNG FSRU at the new jetty, bringing LNG carriers alongside the FSRU to allow ship-to-ship transfer, the statement reads.

The terminal will be connected to India’s gas market via a 635-kilometer pipeline the company is constructing.

The FSRU is capable of reloading previously imported cargoes onto other carriers, giving the company the ability to trade volumes depending on the market conditions.

H-Energy’s general manager of origination, trading and marketing, Manish Tiwari told Reuters the company is currently in negotiations with traders to utilize the FSRU as an optimization tool, adding that some of the LNG supply for the terminal has already been secured while negotiations for additional supplies are still ongoing.

LNG World News Staff