Mumbai-based energy developer H-Energy has secured a floating storage and regasification unit (FSRU) from French LNG seller ENGIE under a five-year deal, a source familiar with the issue said.
The 145,000 cubic metre GDF Suez Cape Ann will be used under the deal.
H-Energy will have an option to extend the charter for additional five years once the initial deal expires.
The project aims to bring 4mtpa to India’s west coast markets starting in the third quarter of 2018. The company is in negotiation with several suppliers, including ENGIE, but no final agreements have been reached.
“The FSRU agreement with ENGIE is separate from supply. No supply terms underline the FSRU agreement,” he said.
H-Energy is considering fixed-price offers for supply proposals under the duration of one year, and a Brent crude-linked option for proposals of up to five years, the source said.
The FSRU will be positioned in Jaigarh on India’s West Coast, which will be a starting point for a pipeline that H-Energy is constructing.
The pipeline will link the terminal with new markets in the country. The gas will be marketed to many segments, including fertilisers, refiners, steel producers, and petrochemical segments. The power generation sector is currently not considered, the source said.
The company also plans to develop a 3mtpa project on India’s east coast. However, no decision has been reached as that part of the country lacks the internal infrastructure to transport the gas. A decision on the project will be made by the end of the year, the source said. firstname.lastname@example.org