HPCL planning to kickstart operations at Chhara LNG terminal; shares give up morning gains

After rising 2 percent intraday, Hindustan Petroleum Corporation Ltd (HPCL) shares erased its morning gains to trade in the red on December 1. HPCL plans to start operations at the 5 million tonne a year Chhara LNG import terminal in Gujarat in the next couple of months and has already got offers from 6-7 parties to hire capacity, a senior company official said on Thursday.

As of 12.30 pm, shares of HPCL were trading at Rs 346 per share, lower by 0.4 percent on the NSE.

While the terminal was mechanically completed in March, the commissioning was delayed since a 40-kilometer pipeline connecting it to an existing network was not ready.

“We will commission the LNG terminal in the next couple of months,” HPCL Director (Marketing) Amit Garg.

HPCL, the oil refining and fuel marketing company, has been a late entrant into the gas business. It built the facility at Chhara in Gir-Somnath district of Gujarat to receive natural gas that has been supercooled to a liquid state in cryogenic ships.

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At the terminal, the liquid gas will again be turned into a gaseous state before being piped to industries for use as feedstock. HPCL has been a late entrant into the gas business.

Over the past month, the OMC’s stock price has surged 37.59 percent. In comparison, the domestic index Nifty 50 has given investors returns of 6.78 percent during the same time period.

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