The Ministry of Ports, Shipping and Waterways (MoPSW) has officially notified Chhara Port in Gujarat for the import of Liquefied Natural Gas (LNG) by sea.
This notification, issued under Rule 16(1) of the Petroleum Rules, 2002, empowers Simar Ports Private Limited (SPPL) to handle LNG imports at Chhara Port. The approval is granted for a period of three years, effective from 19th May 2025 to 18th May 2028. Earlier, in November 2024, the Union Government permitted Chhara Port for the unloading of imported goods and the loading of export goods, or any class of such goods. This recent notification expands the port’s capabilities to include LNG imports, marking a significant step in enhancing India’s energy infrastructure.
Chhara Port operates under HPCL LNG Limited (HPLNG), formerly known as HPCL Shapoorji Energy Private Limited (HSEPL). Established as a 50:50 joint venture between Hindustan Petroleum Corporation Limited (HPCL) and SP Ports Private Limited (SPPPL) on 15th October 2013, HPCL acquired the remaining 50% stake from SPPPL on 30th March 2021, making HPLNG a wholly owned subsidiary. Following this change, the company’s name was changed to HPCL LNG Limited, effective 10th September 2021. HPLNG is developing a greenfield LNG terminal at Chhara Port, located in the Gir-Somnath district of Gujarat. The terminal is designed with an initial regasification capacity of 5 million metric tonnes per annum (MMTPA), with provisions to expand to 10 MMTPA. The project involves the development of LNG storage and regasification facilities, including marine unloading systems, storage tanks, and regasification units.
The terminal aims to supply regasified LNG to the national gas grid, supporting the government’s vision of increasing the share of natural gas in India’s energy mix from 6% to 15% by 2030. The development of the Chhara LNG terminal is expected to enhance India’s energy security by diversifying the sources of natural gas imports and reducing dependence on traditional energy sources. The terminal’s strategic location on the western coast of India positions it as a key node in the country’s energy infrastructure, facilitating the import and distribution of LNG to various regions.
The notification of Chhara Port for LNG imports aligns with the government’s broader objectives of promoting cleaner energy solutions and reducing carbon emissions. By facilitating the import of LNG, the Chhara terminal will contribute to the development of a more sustainable and resilient energy sector in India. As the Chhara LNG terminal begins operations, it is expected to play a pivotal role in meeting the growing demand for natural gas in India, supporting industrial growth, and improving the overall energy landscape of the country.
The successful implementation of this project will not only enhance energy security but also contribute to the creation of a more sustainable and equitable energy system in India. In conclusion, the notification of Chhara Port for LNG imports marks a significant milestone in India’s journey towards a cleaner and more sustainable energy future. With the development of the Chhara LNG terminal, India is poised to strengthen its energy infrastructure, promote cleaner fuels, and achieve its long-term energy goals.
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