H-Energy East Coast Private Limited (HEECPL), a wholly owned subsidiary of H-Energy, plans to set up a world class Floating Storage and Regasification Unit (FSRU) Project located offshore Digha, West Bengal, on the east coast of India. The FSRU will have a regasification capacity of about 3.0 MMTPA and is expected to be commissioned by Q3 2020.
H-Energy participated in the tender issued by Kolkata Port Trust and upon winning this tender received a letter of award in August 2015 for commission and operation of this offshore FSRU project. The FSRU will be located 115 km into the sea within the Kolkata Port Trust (KoPT) boundary Limits and will be connected to the Onshore Receiving Facilities (“ORF”) at Contai through a 115 km long subsea pipeline. The project has completed all major technical and commercial feasibility studies and has also received CRZ clearance from the Ministry of Environment, Forest and Climate Change.
The project will operate to a fine balance of merchant and tolling models, where customers will have the option of booking re-gasification capacity in the FSRU and sourcing LNG themselves, or having RLNG delivered to their plant through gas marketing companies. The project aims at providing customers with essential flexibility in price and gas deliveries to ensure that the Eastern Indian region moves on the path of sustainable development using clean, environment friendly fuel.
As Eastern India has no exiting natural gas pipeline network, it was a major challenge to ensure that the proposed FSRU project had adequate gas evacuation infrastructure in place for it to successfully penetrate the East India markets. Taking a bold step to ensure last mile connectivity, H-Energy submitted an EOI with the pipeline regulator PNGRB proposing a natural gas pipeline of over 700 km to connect the land fall point of the FSRU project at Contai, to major demand centers in West Bengal,