Private Sector Firm H-Energy to Build Eastern India's First Gas Pipeline
H-Energy Private Limited will build eastern India’s first gas pipeline.
The bids for Contai–Dattapulia–Jajpur–Dhamra–Cuttack-Paradip natural gas pipeline were opened on May 12, 2016 by the pipeline regulatory authority (PNGRB) where H-Energy emerged as the winning bidder amongst the four technically qualified bidders, the company announced on Friday.
The pipeline will span more than 715 kms and will connect important demand centers in eastern Indian states West Bengal and Odisha delivering gas to major industrial consumers such as refineries, petro-chemical units, fertilizer units and power plants. Further, the pipeline will help develop city gas networks in major regions across Eastern India such as Kolkata, Khordha, and Cuttack. The pipeline will also deliver re-gasified LNG to customers in western Bangladesh near Dattapulia at India-Bangladesh border.
“This will be the first ever natural gas pipeline to be set up in this region which was deprived of natural gas pipeline infrastructure so far. As envisioned, this development will act as a catalyst to bring in the paradigm shift in the eastern India and will be an imperative move towards connecting eastern region with the Indian gas pipeline grid,” Darshan Hiranandani H-Energy chief executive said.
The formal process of authorization is expected to take another two weeks subsequent to which H-Energy will be granted authorization to lay the pipeline.
H-Energy plans to start construction activities of the pipeline immediately after the award of authorization by the pipeline regulator to meet the timeline of its East Coast project for supply of first gas to the customers in eastern India by second quarter 2019. H-Energy is in discussion with major international pipeline companies to bring in the latest technology to help implement the pipeline laying process in a fast and efficient manner.
The Mumbai based company is also setting up a 3.5 MMTPA FSRU offshore state of West Bengal. The tender for offshore FSRU will be announced soon and H-Energy plans to complete the tender process by third quarter of 2016. It has already entered into agreements with suppliers for supply of 1 MMTPA LNG on long term basis which are backed by agreements already executed with downstream buyers. H-Energy will further source around 1 MMTPA of additional LNG volumes on long and medium term basis, as further agreements with downstream customers are executed.