Development of Small Scale Model

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.

LNG is being supplied by truck tankers to upcoming City Gas Distributions entities, Gas customers which are not connected to pipelines or not feasible to be connected by pipelines.

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 organisations 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.

Industrial Supply

LNG is being supplied through road tankers from PLL's Dahej and Kochi terminals to customers which are not connected with pipeline since 2007 and 2014 respectively. Currently, PLL has a total of 6 truck loading bays, 4 bays at Dahej Terminal and 2 bay at Kochi Terminal which adds up to a cumulative capacity of 60 truck loadings per day. Considering rapid growth of city gas distribution in India, PLL is in expansion mode and adding additional 6 truck loading bays, 4 bays at Dahej Terminal and 2 bay at Kochi Terminal, which will double its truck loading bay capacity to be able to load 120 tanker trucks per day by Q2 2024.

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 an automotive fuel 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, LNG as an automotive fuel holds a huge potential for retail fuel market.

In Transport sector, Heavy Duty Vehicles (HDVs) segment is the largest consumer of Diesel and is the most significant contributor to air pollution. PLL aims to reduce Green House Gas (GHG) emissions from medium and heavy commercial vehicles, by offering not only a cleaner alternative but also an economic & efficient fuel. LNG is a cleaner fuel having around 20-22% less carbon dioxide (Co2) emission as compared to diesel along with negligible PM and SOx emissions. The fuel also presents economic benefits to the consumers compared to other liquid alternatives fuel for Medium and Heavy Commercial vehicles. The energy density of LNG is greater than CNG, so more fuel can be stored on board the vehicle, which can provide longer refuelling range and is suitable for the long-haul Heavy Duty Vehicle segment.

PLL is undertaking expeditious development of LNG dispensing infrastructure across major National Highways in the Country. In this regard, initially PLL is setting up four LNG dispensing stations in Southern India, with three stations in Tamil Nadu and one station in Karnataka, and one LNG dispensing stations is under development at Dahej, Gujarat.

To establish a proof of concept, PLL has been successfully operating LNG Dispensing Stations since 2019 and 4 LNG driven buses approved for commercial operations for its staff transportation at Dahej and Kochi terminals.