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

HPCL is seeking to lease a capacity of three million metric tons per year to other companies for a period exceeding 10 years, according to Rao. Although the terminal was completed in March, its commissioning has been delayed due to the unavailability of a 40-kilometer pipeline link to the existing sales network for consumers. However, Rao expressed optimism that the pipeline will be ready in the near future.

Rao explained that the terminal will operate at approximately 30 per cent capacity in 2024 and is expected 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 tons per year in the future.

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