Höegh LNG and H-Energy, the energy venture of the Hiranandani Group, completed and signed all documentation for chartering of Höegh LNG's Floating, Storage and Regasification Unit (FSRU), Höegh Giant, for H-Energy's LNG import terminal in Jaigarh, in Ratnagiri district of Maharashtra, India. FSRU is the offshore equivalent of a land-based LNG import terminal. India has several land-based LNG import terminals in operation. This will however be the first FSRU based LNG import terminal to commence operations in India and Höegh Giant will be the first FSRU to operate in India.
The FSRU will deliver gas through the 56 km Jaigarh-Dabhol pipeline connecting the LNG import terminal to the national gas grid. It will also deliver LNG for onshore distribution through LNG truck loading facilities, as well as reloading LNG onto small-scale LNG vessels for downstream distribution or LNG bunker services.
Abhishek Saxena commented, "It was an interesting and complex transaction to advise on. Since it was the first of its kind transaction, involving a vessel which is permanently parked, it required interpretation and analysis of Indian laws across different areas to assess their applicability to the transaction which meant working through lack of clarity to provide actionable advice.".
The firm advised on all the Indian law aspects of the chartering, operations and management of the FSRU in India and on the transaction documents, including the charter agreement, and the licenses and permissions and other compliances required under Indian law including laws relating to shipping; exchange control; petroleum and natural gas; and employment.
The Phoenix team advising on this matter comprised of Abhishek Saxena (partner), Pranav Srivastava (partner), Nikhil Pareek (senior associate) and Aashna Kothiyal (associate) from Delhi office. In addition, Gautam Bhatikar (partner) and Shruti Salian (associate) from Mumbai office advised on shipping law aspects.