October 17, 2018 / 6:44 AM / in a month

India's H-Energy says to delay start of LNG terminal until 2019

SINGAPORE (Reuters) - India’s H-Energy on Wednesday said it expected to delay the start-up of a liquefied natural gas (LNG) terminal in the west of the country until the first quarter of next year.

The terminal had been slated to start full commercial operations by the final quarter of 2018, but that was likely to be pushed back after heavy monsoon rains affected the laying of a pipeline, said Rahul Tiwari, senior LNG trader at the company.

The 60-km (37-mile) pipeline connects the 4 million metric tonnes per annum (mmtpa) terminal at the port of Jaigarh to the national gas grid at Dabhol. The terminal is a floating storage and regasification unit (FSRU).

H-Energy, a unit of real estate group Hiranandani, is also expected to make a final investment decision on a separate 4 mmtpa LNG terminal in the east coast of India next April, Tiwari said on the sidelines of an LNG conference in Singapore.

Regasified LNG from that terminal, which would be capable of expanding to 7 mmtpa, could eventually be supplied to customers in Bangladesh through a natural gas pipeline from Kanai Chatta to Shrirampur, he added.

Reporting by Jessica Jaganathan; Editing by Joseph Radford

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