K Sreenivasa Rao, Chief Executive of Hindustan Petroleum Corp (HPCL), has announced that six or seven bids from various industries have been received by the company, expressing interest in leasing a portion of its Chhara liquefied natural gas (LNG) import terminal on India's west coast. Rao stated that HPCL aims to commence operations at the terminal, which has a planned capacity of 5 million metric tonne per year, in the December quarter. He mentioned that a decision regarding the lease award should be made within the next three months.

Rao mentioned that HPCL is looking to lease a capacity of three million metric tons per year to other companies for a period exceeding 10 years.

According to him, although the terminal was completed in March, its commissioning has faced delays due to the unavailability of a 40-kilometre pipeline link to the existing sales network for consumers. However, Rao expressed optimism that the pipeline would be ready in the near future.

Rao explained that the terminal is expected to operate at around 30% capacity in 2024 and is projected to reach full capacity within four to five years. Additionally, HPCL has made provisions to potentially double the terminal's capacity to 10 million metric tonne per year in the future.

Under the leadership of Prime Minister Narendra Modi, India is making efforts to strengthen its gas infrastructure, aiming to increase the share of natural gas in its energy mix to 15% by 2030, up from the current 6.5%. Rao highlighted that India's gas demand is now rising as prices have softened, following a previous spike that had dampened demand.

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