India's HPCL to start LNG terminal around year-end, seeks term supply, sources say
HPCL is seeking an LNG cargo to commission its new 5 million tpy import terminal by December or January and is in talks with several companies for long-term supply. The terminal, crucial for meeting needs at HPCL's refineries and projects, had faced delays due to weather.
HPCL has built a 5 million metric ton per year (tpy) LNG import terminal at Chhara in western India, the country's sixth, as New Delhi seeks to boost the use of the cleaner fuel . The company's previous attempts to commission the plant in April failed due to the bad weather.
The company wants to use the three-month fair weather window that begins in November to commission the LNG terminal , two sources said.
The terminal and related infrastructure, including pipeline connectivity for LNG sale, are completed, the sources said, adding the plan is to commission the terminal in December-January.
State-run HPCL received "a good response" to its expression of interest seeking LNG supplies for 15 years, one of the sources said.
It is seeking one LNG cargo per month beginning from late 2026 or early 2027, priced on a Brent-linked basis.
HR Human Potential and the Future of Employment By - Lynda Gratton, Prof.
at London Business School, Speaker, Author, Global Thought Leader View Program Finance Financial Literacy i.e Lets Crack the Billionaire Code By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator View Program Finance Financial Reporting and Analytics By - Dr. C.P. Gupta, Professor: Department of Finance and Business Economics, University of Delhi View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Legal Labour Laws By - Ankita Ray, Partner: Cyril Amarchand Mangaldas View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Future of Marketing & Branding Masterclass By - Dr. David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding Consultant View Program Office Productivity Advanced Excel Course - Financial Calculations & Excel Made Easy By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Artificial Intelligence(AI) AI for Everyone: Understanding and Applying the Basics on Artificial Intelligence By - Ritesh Vajariya, Generative AI Expert View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance AI and Generative AI for Finance By - Hariom Tatsat, Vice President- Quantitative Analytics at Barclays View Program Artificial Intelligence(AI) Basics of Generative AI : Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program Finance Corporate Fraud and Forensic Modelling By - Ankush Lamba, Managing Director- Ankura View Program Legal Mastering M&A Deal Making By - Ashwath Rau, Senior Partner- AZB & Partners View Program Based on the response, the company shortlisted more than 20 potential suppliers and floated a limited tender for them, the first source said, adding HPCL has received offers from seven to eight players.
Traders including Shell, TotalEnergies and Vitol are keen to supply HPCL, said one of the sources.
All three of the sources declined to be identified as they were not authorised to speak to the media.
Shell declined to comment.
HPCL, TotalEnergies and Vitol did not immediately respond to requests for comments.
HPCL said in July it was seeking LNG deals as it expects to start its Chhara terminal by year-end. The LNG will meet requirements at its two existing refineries and a new 180,000 barrels per day (bpd) refinery and petrochemical project in the desert state of Rajasthan.
Additionally, two of the sources said that Indian utility Torrent Power and state-owned Gujarat State Petroleum Corporation (GSPC) were trying to source long-term LNG supplies from 2026 or 2027.
Torrent Power is seeking a 10-year supply deal for about 1 million tons per annum (mtpa), while GSPC is seeking a 10-15 year supply deal for 0.5 mtpa.
Torrent Power and GSPC could not be reached for comment.
