Press Release

H-Energy Private Limited and the Korea Consortium have Entered into a Landmark MOU on November 16th, 2016.

November 18, 2016

H-Energy Private Limited and Korea Gas Corporation Limited, SK Shipping, Fairwood Peninsula Energy and Korea Development Bank, have entered into a landmark MOU on November 16th, 2016. This MoU envisages the participation of four large entities, in the FSRU and pipeline projects of H-Energy Private Limited in the East Coast and the West Coast of India through equity investments coupled with joint management in the areas of project execution, operations and maintenance and skill development.

On the East Coast of India H-Energy Pvt. Ltd has made significant progress in setting up a Floating Storage and Regasification Unit (FSRU) in the offshore Digha region of West Bengal which will be connected to the onshore receiving facility by a 115 km subsea pipeline. This project was awarded to H-Energy Pvt. Ltd and its technical partner through a tender process carried out by the Kolkata Port Trust. In parallel H-Energy Pvt. Ltd plans to lay a 715 km Natural Gas pipeline originating in Contai in West Bengal. This pipeline is intended to service a number of customers in West Bengal, Odisha as well as to gas based power projects in Western Bangladesh. The point of delivery of Natural Gas will be near Dattapulia at the India-Bangladesh border.

H-Energy Pvt. Ltd is also executing an FSRU and pipeline project at Jaigarh Port in Maharashtra on the West Coast of India. For this project H-Energy Pvt. Ltd has entered into a Port Concession Agreement with JSW Jaigarh Port Limited and has awarded the contract for the construction of LNG jetty to JSW Jaigarh Port Limited. For delivery of the regasified LNG to customers in Maharashtra, Gujarat, Goa and Karnataka, the Petroleum and Natural Gas Regulatory Board has granted two authorizations to H-Energy Pvt. Ltd, namely a 60 KM tie-in Natural Gas Pipeline from Jaigarh to Dabhol and a 635 KM Natural Gas Pipeline from Jaigarh to Mangalore through the markets of Ratnagiri, Sindhudurg, Goa and Karwar. The EPC contract for the construction of the LNG jetty and the EPCM contract for the construction of tie-in pipeline will be awarded shortly.

The cumulative capability of Korea Gas Corporation Limited, SK Shipping, Fairwood Peninsula Energy and Korea Development Bank is immense . KOGAS is the largest importer of LNG in the world and owns and operates 4440 km of pipeline network in Republic of Korea. SK Shipping, an affiliate of SK Group, the third largest business group in Republic of Korea, owns and operates 96 vessels including 12 LNG carriers. Fairwood Peninsula Energy is engaged in the path breaking development of the Delfin Floating LNG project in the Gulf of Mexico in the United States. The Korea Development Bank is owned by the Government of Republic of Korea and plays a major role in providing project finance to projects in the Asia Pacific region.

It is expected that the partnership of H-Energy Pvt. Ltd and Korea Gas Corporation Limited, SK Shipping, Fairwood Peninsula Energy and Korea Development Bank will provide much needed fillip to the development of Energy Infrastructure in Eastern and Western India.