H-Energy to sell up to 49% stake in 2 projects

By: | Published: April 3, 2017 6:33 AM

H-Energy, the oil and gas arm of Hiranandani Group, plans to sell a stake of anywhere between 26-49% in two projects — Jaigarh LNG import terminal and the West Coast LNG pipeline project.

H-Energy, Hiranandani Group, Jaigarh LNG import terminal, West Coast LNG pipeline project, MoU, Korea Gas Corporation, L&T Infrastructure Engineering, FSRUH-Energy, the oil and gas arm of Hiranandani Group, plans to sell a stake of anywhere between 26-49% in two projects — Jaigarh LNG import terminal and the West Coast LNG pipeline project. (Source: Reuters)

H-Energy, the oil and gas arm of Hiranandani Group, plans to sell a stake of anywhere between 26-49% in two projects — Jaigarh LNG import terminal and the West Coast LNG pipeline project — a senior company official confirmed to FE. While the company had signed an MoU last year with a Korea Gas Corporation led-consortium for an equity stake in LNG import terminal, a deal is yet to be announced.

The official declined to comment on the matter. The projects are valued at `1,742 crore and `4,020 crore, respectively. H-Energy is exploring its options with both private equity investors and pipeline players. The 635 km West-Coast-pipeline will run from Jaigarh port in Maharashtra to Mangalore in Karnataka. The company also wants to sell a stake in the 4 million tonne per annum (mtpa) LNG import terminal at the Jaigarh Port which is being built at a cost of `1,742 crore and includes a 60 km tie-in pipeline which connects Jaigarh to Dabhol, the official said.

The pipeline will help supply gas to industries in Gujarat, Maharashtra, Goa and Karnataka. The projects won’t be held up for want of funds, the official said. The stake sale is mostly to get the technical know-how and the best technology being used in the field of pipelines and the LNG terminals. The company is capable of completing these projects on the basis of its parental or group support. H-Energy has started construction work of Jetty for the Jaigarh import terminal this month.

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L&T Infrastructure Engineering, Chennai are the designers for the Jetty while civil construction work has been awarded to ITD Cementation. The civil work would be managed by Jaigarh Port. The commercial operation of the terminal is expected by end of third quarter of 2017-18. “The work on Jaigarh-Mangalore pipeline has also started. The route survey, environmental approvals, and approvals from Railways is being sought.

The real construction will start from this year end,” the official said. H-Energy separately plans to start work on a storage and regasification unit (FSRU) in the offshore Digha region of West Bengal as well.

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