TotalEnergies has confirmed the delivery of the first liquefied natural gas (LNG) cargo to India’s newest terminal, on the country’s east coast.
TotalEnergies (PAR:TTE) confirmed delivery of the Qatari cargo to the terminal, located in the state of Odisha on the east coast of India.
Its arrival means commissioning of the site can continue, with full commercial operations slated to begin at the end of May.
With capacity of 5 million tonnes per year, Dhamra adds more than 10% to India’s total regasification capacity. The supermajor said it would also help increase the share of gas in the country’s energy mix from 8% to 15% by 2030.
The terminal is owned and operated by Adani Total Private Limited (ATPL), a 50-50 joint venture between TotalEnergies and Indian conglomerate Adani Group.
ATPL expects to receive 2.2 million tonnes of LNG during the year ending March 2024, the company chief executive told Reuters earlier this year.
The venture has a 20-year take-or-pay contract at Dhamra to provide regasification services to state-run Indian Oil Corp for 3 million tonnes per year, while gas distributor GAIL India has an arrangement for 1.5 million tonnes.
“We are pleased to have completed the first delivery of LNG to the new Dhamra LNG terminal, developed in partnership with Adani, with a cargo from Qatar,” said Total’s senior VP for LNG Thomas Maurisse.
“India wants to develop the use of natural gas to reduce the carbon intensity of its energy mix by replacing coal, and LNG can therefore meet growing domestic demand. The commissioning of the Dhamra terminal reflects TotalEnergies’ ambition to support India’s energy transition and supply security.”
Many of Total’s co-ventures with the group looked threatened earlier this year after a report by US-based Hindenburg Research alleged Adani had conducted “brazen” fraud, using offshore companies to artificially boost revenues and manipulate stock prices.
The fallout from the report wiped a reported $125bn off the value of the company, though it has denied Hindenburg’s allegations.
While Total said its exposure to the group amounted to some $3.1bn, it said the impact of the findings was “limited”, representing 2.4% of capital employed and only $180 million net operating income in 2022.
However, it put plans for a proposed green hydrogen venture with an Adani subsidiary on ice.
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