H-Energy Makes a Foray into Indian CGD Sector

Mumbai-headquartered H-Energy has decided to venture into the Indian city gas distribution (CGD) sector for the first time, bidding for a number of areas during the ninth CGD bidding round that closed July 10, an official from the company told NGW.

“I would not like to disclose the exact number of bids that we have put in, but they are in high double digits,” the official said. H-Energy has bid for licences to retail gas in areas in the western Indian state of Maharashtra, southern state of Karnataka and some eastern states. “Our strategy is to create a synergy between our CGD business and out LNG terminal business,” the official said.

H-Energy has proposed one floating LNG storage and regasification unit (FRSU) on India’s west coast and another on the east coast. The FSRU on the west coast is expected to be on stream by the end of this year. In May this year, H-Energy said that the FSRU GDF Suez Cape Ann had arrived at Jaigarh Port in Maharashtra. The FSRU is owned by Hoegh LNG but on charter to France's Engie which had sub-chartered it to China's Cnooc for the last two winters for use at the Chinese port of Tianjin.

The FSRU that H-Energy is developing on India’s east coast will be located at Kukrahati in the state of West Bengal. The company is expected to take the final investment decision (FID) by end-2018 and the FSRU is expected to become operational in 2021.

The ninth CGD bidding round has received very strong response from the industry. Earlier this week, Indian downstream regulator Petroleum and Natural Gas Regulatory Board (PNGRB) said it has received more than 400 bids during the round. India is rolling out networks in 86 new areas covering 174 districts in 22 states/union territories. The technical bids would be opened between July 12-18.

H-Energy also said that the latest round had indeed been very competitive. “Some of the bids were opened yesterday and some would be opened today. From the information we have, the number of bids in this round has been huge. One area in the state of Andhra Pradesh has got 15 bids,” the official said.