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Pipeline delay defers H-Energy's FSRU terminal start up to 2019

India’s H-Energy said it expected to delay the start-up of an 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 37-mile pipeline connects the 4 MMtpy 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 MMtpy, could eventually be supplied to customers in Bangladesh through a natural gas pipeline from Kanai Chatta to Shrirampur, he added.

REUTERS Reporting by Jessica Jaganathan, Editing by Joseph Radford

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