India's HPCL to start LNG terminal around year-end, seeks term supply

India's Hindustan Petroleum Corp (HPCL) is seeking a liquefied natural gas (LNG) cargo to commission its new import terminal in December or January, and is in talks with between eight and nine companies for long-term supply, Reuters reports.

HPCL (HPCL.NS), opens new tab has built a 5 million metric ton per year (tpy) LNG import terminal at Chhara in western India, the country's sixth, as New Delhi seeks to boost the use of the cleaner fuel. The company's previous attempts to commission the plant in April failed due to the bad weather.

The company wants to use the three-month fair weather window that begins in November to commission the LNG terminal, two sources said.

The terminal and related infrastructure, including pipeline connectivity for LNG sale, are completed, adding the plan is to commission the terminal in December-January.

State-run HPCL received "a good response" to its expression of interest seeking LNG supplies for 15 years, one of the sources said. It is seeking one LNG cargo per month beginning from late 2026 or early 2027, priced on a Brent-linked basis.

Based on the response, the company shortlisted more than 20 potential suppliers and floated a limited tender for them, the first source said, adding HPCL has received offers from seven to eight players.