WionDrive News Desk 
Hindustan Petroleum Corporation Limited (HPCL) is on the verge of launching its new Liquefied Natural Gas (LNG) import terminal at Chhara in western India. The state-owned oil company is actively seeking LNG cargo to commission the facility, expected to occur in December or January, marking a crucial step in India’s push to expand its clean energy infrastructure.
The 5 million metric ton per year (tpy) terminal, India’s sixth LNG import facility, represents a key component of New Delhi’s strategy to increase the use of cleaner fuels across the country. HPCL’s earlier attempts to commission the plant in April were thwarted by adverse weather conditions, underscoring the challenges faced in such large-scale energy projects.
According to sources familiar with the matter, who spoke on condition of anonymity, HPCL plans to utilise the three-month fair weather window beginning in November to commission the LNG terminal. The terminal and its associated infrastructure, including pipeline connectivity for LNG distribution, are reportedly complete, setting the stage for the facility’s operational debut.
The commissioning of this terminal is not just a milestone for HPCL but also a significant boost to India’s LNG import capacity. As the world’s fourth-largest LNG importer, India has been actively expanding its import infrastructure to meet growing domestic demand for natural gas, particularly in industrial and power generation sectors.
In preparation for the terminal’s operation, HPCL has been proactively seeking long-term supply agreements. The company has reportedly received a positive response to its expression of interest for 15-year LNG supply contracts. Starting from late 2026 or early 2027, HPCL is looking to secure one LNG cargo per month, with pricing linked to Brent crude oil benchmarks.
The level of interest from potential suppliers has been notable. Sources indicate that HPCL has shortlisted over 20 potential suppliers and subsequently issued a limited tender. Responses have been received from seven to eight players, with major international traders such as Shell, TotalEnergies, and Vitol reportedly keen on securing supply deals with HPCL.
This move towards long-term supply agreements reflects HPCL’s strategic planning for its future energy needs. The company anticipates using the imported LNG to meet requirements at its two existing refineries and a new 180,000 barrels per day (bpd) refinery and petrochemical project in Rajasthan.
The broader implications of HPCL’s LNG terminal launch extend beyond the company itself. It signals India’s continuing commitment to diversifying its energy mix and reducing its carbon footprint. Natural gas, as a cleaner-burning fossil fuel, is seen as a crucial transition fuel in India’s journey towards a more sustainable energy future.
Furthermore, the development at Chhara is not occurring in isolation. Sources also revealed that other Indian energy players are making similar moves in the LNG market. Torrent Power, an Indian utility, and Gujarat State Petroleum Corporation (GSPC), a state-owned entity, are reportedly in the process of securing their own long-term LNG supply deals.
Torrent Power is said to be seeking a 10-year supply agreement for approximately 1 million tons per annum (mtpa), while GSPC is looking at a 10-15 year deal for 0.5 mtpa. These developments collectively underscore the growing importance of LNG in India’s energy landscape and the proactive steps being taken by various stakeholders to secure long-term supply.
As HPCL moves closer to commissioning its Chhara terminal, the eyes of the global energy industry will be on India. The successful launch and operation of this facility could serve as a template for future LNG import projects in the country and potentially influence regional energy dynamics.
While HPCL, Shell, TotalEnergies, and Vitol have not officially commented on these developments, and Torrent Power and GSPC could not be reached for comment, the flurry of activity in India’s LNG sector speaks volumes about the country’s energy ambitions and the evolving nature of its fuel mix.
