India to get its first floating storage and regasification unit

23 Nov 2020 CW Team

Norway’s Hoegh LNG Holdings, a provider of specialised vessels for importing liquified natural gas, entered into a binding commitment to supply a floating storage and regasification unit (FSRU) to India’s H-Energy on Thursday. This will be the first FSRU to start operating in India, which has six land-based LNG import terminals.

The FSRU terminal, which has been delayed on many occasions, is planned to handle 4 mt of LNG per year in India.

The company said that they will supply the Indian natural gas company with the FSRU in Jaigarh, south of Mumbai in Maharashtra, from the first quarter of 2021.

The final agreement period of 10 years will have an annual termination option from the fifth year. Hoegh said that it will assign one of its available FSRUs which is presently trading in the LNG carrier market.

Hoegh’s President and CEO Sveinung Stohle said that the construction of H-Energy’s import project is nearly completed and that they are positioning it as a well-timed opportunity to enter one of the world’s highest expanding LNG markets.

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