Petronas Inks Deal with India's H-Energy (Update)

Updates with remark from CEO in 2nd para

Malaysian state-owned Petronas said February 22 it has signed an LNG term agreement to supply Indian H-Energy but provided no details about the volume it will deliver nor the supply price.

However H-Energy CEO Darshan Hiranandani said in an e-mail sent February 23 to NGW: "It is a medium term deal that will start shortly after our LNG Terminal commences operations this year." 

H-Energy is developing LNG import terminals on India’s west and east coasts. On India's west coast, its terminal will be at Jaigarh Port in the state of Maharashtra, which is expected to be online later this year, while on the east coast it is developing one offshore Digha in the Indian state of West Bengal, which is likely to be operational in 2020.

In December, H-Energy and Japan's Kawasaki Kisen Kaisha (K Line) signed a memorandum of understanding (MoU) to jointly develop the project offshore Digha, which will be based on a FSRU/FSU to be provided by K Line. The project will supply regasified LNG to customers in West Bengal and Bangladesh. H-Energy Gas Marketing will book regasification capacity in the project and will be responsible for sourcing LNG and for supplying regasified LNG to downstream customers.

As of today, all the four operational LNG terminals are on India’s west coast. However, in the next few years, India’s east coast shall see a few LNG import terminals starting up which should improve gas supply to the undersupplied eastern parts of India.