Hindustan Petroleum Corporation Ltd (HPCL) is set to commission its new liquefied natural gas (LNG) terminal in Chhara, Gujarat, by the end of 2024 or early 2025. The facility, with a capacity of five million tonnes per year, is expected to begin operations during the favorable weather window starting in November, according to a press release issued by the company.
HPCL has already completed the infrastructure for the terminal, including pipeline connectivity for distributing LNG. The company is in discussions with eight to nine firms to finalize long-term LNG supply agreements, with plans to secure one cargo per month starting in late 2026 or early 2027. These agreements are expected to be priced based on Brent crude oil benchmarks.
This terminal is part of HPCL’s broader strategy to expand its presence in the LNG sector and meet the increasing demand for natural gas in India. Once operational, the terminal will contribute to enhancing India’s LNG import capacity.