H-Energy Private Limited announces having won the bid for laying the first natural gas pipeline in Eastern India. The bids for Contai – Dattapulia – Jajpur – Dhamra – Cuttack – Paradip natural gas pipeline were opened on 12th May, 2016 by the pipeline regulatory authority (PNGRB) where H-Energy emerged as the winning bidder amongst the four technically qualified bidders.
The pipeline will span more than 715 kms and will connect important demand centers in West Bengal and Odisha delivering gas to major industrial consumers such as refineries, petro-chemical units, fertilizer units and power plants. Further, the pipeline will help develop city gas networks in major regions across Eastern India such as Kolkata, Khordha, and Cuttack in line with Indian Government’s ‘Smart City’ initiative. The pipeline will also deliver re-gasified LNG to customers in Western Bangladesh near Dattapulia at India-Bangladesh border.
Mr Darshan Hiranandani – CEO – H-Energy rejoices over a great accomplishment and says, “This will be the first ever natural gas pipeline to be set up in this region which was deprived of natural gas pipeline infrastructure so far. As envisioned, this development will act as a catalyst to bring in the paradigm shift in the Eastern India and will be an imperative move towards connecting Eastern region with the Indian gas pipeline grid.”
The pipeline regulatory authority invited bids for this pipeline by 23rd March, 2016 and the financial bids were opened on 12th May, 2016. The formal process of authorization is expected to take another two weeks subsequent to which H-Energy will be granted authorization to lay the pipeline.
H-Energy plans to start construction activities of the pipeline immediately after the award of authorization by the pipeline regulator to meet the timeline of its East Coast project for supply of first gas to the customers in Eastern India by Q2 2019. H-Energy is in discussion with major international pipeline companies to bring in the latest technology to help implement the pipeline laying process in a fast and efficient manner.
This is an important milestone for H-Energy’s overall project development plan in Eastern India where it is setting up a 3.5 MMTPA offshore FSRU project. In August, 2015 H-Energy had received Letter of Award from the Kolkata Port Trust (KoPT) for setting up Floating Storage and Regasification Unit (FSRU) in the offshore Digha region of West Bengal. The tender for offshore FSRU will be announced soon and H-Energy plans to complete the tender process by Q3 2016.
H-Energy has already entered into agreements with suppliers for supply of 1.0 MMTPA LNG on long term basis which are backed by agreements already executed with downstream buyers. H-Energy will further source around 1.0 MMTPA of additional LNG volumes on long and medium term basis, as further agreements with downstream customers are executed.
Mr. Darshan Hiranandani says, “The award of pipeline project in Eastern India is a significant step towards our commitment in developing gas based infrastructure projects in Eastern India region. H-Energy will continue to focus its efforts in delivering clean, safe and reliable energy solutions to consumers in India.”