K Line, H-Energy to Develop Indian LNG Project

India's H-Energy said January 16 that it and Japan's Kawasaki Kisen Kaisha (K Line) signed a memorandum of understanding (MoU) December 12 to jointly develop an Indian east coast LNG import project. 

H-Energy shall hold 74% in the joint venture while K Line shall hold the remaining 26% stake. The project envisages an FSRU/FSU in the offshore Digha region of eastern Indian state of West Bengal to provide regasified LNG to customers in West Bengal and Bangladesh. The FSRU/FSU for this project shall be provided by K Line.

“We greatly value the relationship with K Line and are happy that a global shipping company like K Line with vast experience in LNG shipping operations is part of our east coast LNG project. The companies will further strengthen their relationship through collaboration in other areas such as LNG bunkering at major ports on the east coast and west coast of India and supply of LNG ships for other projects of H-Energy. These are currently under discussion and are expected to fructify shortly,” Darshan Hiranandani, CEO of H-Energy said. Commercial operations are expected to start by 2020, he added.

H-Energy Gas Marketing will book re-gasification capacity in the project and will be responsible for sourcing LNG and for supplying R-LNG to downstream customers, providing end-to-end gas solutions to the downstream customers in West Bengal. The project will also be supply regasified LNG to customers in western Bangladesh.