Norwegian floating LNG player Höegh LNG has completed and signed all documentation for its 10-year charter with H-Energy.
The vessel selected to serve the LNG import project at Jaigarh port is the FSRU Höegh Giant.
The selection follows the binding commitment signed in November last year. The agreement is for a period of 10 years with annual termination options after year five, Höegh LNG said in a statement.
FSRU Höegh Giant is currently completing its LNGC carrier charter with Naturgy, and will then proceed directly to Keppel Shipyard for minor modifications.
Additionally, the vessel will pre-complete its five-year periodic class survey, originally scheduled for 2022 as this will improve efficiency and reduce costs.
The vessel is expected to be off hire for approximately 40 days in the first quarter of 2021 before the start-up under the H-Energy contract in March 2021.
Höegh Giant will be the first FSRU operating in India and will deliver natural gas to the 56 km Jaigarh-Dabhol pipeline connecting the LNG import terminal to the national gas grid and will also deliver LNG for onshore distribution through LNG truck loading facilities, as well as reloading LNG onto small-scale LNG vessels for downstream distribution or LNG bunker services.
The H-Energy/HLNG FSRU terminal will allow for the replacement of coal consumption with natural gas at a scale that reduces C2 emissions by up to approximately 120 million tonnes, NOx emissions by approximately 97 per cent and SOx emissions by approximately 99 per cent over the 10-year period.
Commenting on the finalization of the paperwork and the selection of the FSRU, president and CEO Sveinung Støhle said, “A roadmap with H Energy also includes the joint development of the downstream small-scale LNG market in the region, using the FSRU as the terminal for storage and re-loading to smaller vessels. “
He added that India is a high-growth market with clear potential for Höegh LNG to provide additional FSRUs and clean energy solutions to this market over the coming years.
To remind, the project located at Jaigarh Port, in Ratnagiri district of Maharashtra, will be implemented in two phases. Phase I consists of a jetty-based FSRU of 4 mtpa capacity.
H-Energy intends to develop an 8 mtpa land-based project in Phase II.