Small Scale LNG (SSLNG)

Development of Small Scale Model

PLL mooted the concept of Small Scale LNG (SSLNG) i.e. consumption of LNG as liquid only in long distance heavy duty trucks and inter city buses. Further, LNG by trucks to upcoming City Gas Distributions entities, Gas consumers not connected to pipelines or not feasible to connect by pipelines is expanding PLL’s business.

The Small Scale LNG supply chain includes supply of natural gas in the form of LNG to small consumers through unconventional transportation medium like LNG carrying trucks, small vessels, etc. The segment includes:

  • Supply to small industrial consumers which are not connected to NG pipeline.
  • Supply to consumers with specific fuel requirement (constant calorific values or where constant flame temperature is required) like glass industries, ceramic tiles or organizations for research purpose.
  • LNG use as an automotive fuel. For this purpose, LNG dispensing stations are being developed on Indian highways.
  • Supply of LNG to City Gas Distribution companies for development of an authorized Geographical Area at a faster pace via LNG route instead of waiting for Natural gas trunk pipelines to come to their area.

Industrial Supply

PLL has been supplying small industrial customers which are not connected with pipeline for years through trucks tankers. Currently, PLL has a total of 5 truck loading bays, 4 bays at Dahej Terminal and 1 bay at Kochi Terminal which adds up to a cumulative capacity of 50 truck loadings per day.

Apart from the industries that have NG pipeline connectivity issues, some industries have specific fuel requirements like stable flame point temperature like in glass industries, liquid fuel requirement etc. These industries are also supplied with LNG through trucks.

LNG as an Automotive Fuel

PLL mooted the concept of consumption of LNG as liquid only in long distance heavy duty trucks and inter city buses. As seen from experience in similar economies like China where LNG as an automotive fuel is used quite aggressively (about 10 Million tonnes of LNG per year), LNG as an automotive fuel holds a huge potential for retail fuel market. This is a cleaner fuel with reduced CO2 emission of around 20-22% along with negligible PM and SOx emissions and reduced fuel cost compared to other liquid alternate liquid fuel for Medium and Heavy Commercial vehicles.

PLL intends to augment efforts of OMCs and authorized CGD entities for expeditious development of LNG dispensing infrastructure across major National Highways in the Country. In this regard, PLL has signed agreement with Gujarat Gas Limited and is co-developing 5 LNG/LCNG Stations. PLL has also signed MoUs with Indian Oil Corporation Limited (IOCL), Indraprastha Gas Limited (IGL) and Sabarmati Gas Limited (SGL) and is discussion with various other stakeholders for making LNG as an automotive fuel a reality in the Country. PLL is also in discussions with State Roadways Corporations such as KSRTC to run a few buses on LNG and establishing LNG dispensing stations at their locations.

To establish a proof of concept, PLL has been successfully operating LNG Dispensing Stations and 4 LNG driven buses approved for Commercial operations for its staff transportation at Dahej and Kochi terminals.


Other Initiatives

Various Initiatives wrt Small Scale LNG, exploring business opportunities in neighbouring countries (Sri Lanka, Bangladesh, Mauritius), RLNG terminal eastern coast, Andaman, City-gas distribution/ direct marketing and Air Separation Unit is also being explored along with maintaining highest standards of business ethics.

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