NEWS – First SSLNG plant of India commissioned at Vijaipur in Madhya Pradesh

HIGHLIGHTS

• Introduction to Small-Scale LNG (SSLNG)
  • SSLNG refers to liquefaction and transportation of natural gas at a smaller scale using unconventional transportation methods.
  • It is a nascent industry globally but holds potential for expanding natural gas reach and consumption.
  • SSLNG supplies gas in its liquid form (LNG) to industrial and commercial consumers through specialized trucks and small vessels in regions without pipeline connectivity.
• India’s Gas-Based Economy Ambition
  • The government aims to increase natural gas share in the energy mix to 15% by 2030.
  • Natural gas is cleaner and cheaper than conventional hydrocarbons, making it crucial for India’s transition towards green energy.
• Challenges in Gas Consumption
  • Transportation to areas without pipeline grids has been a major challenge hindering gas adoption.
  • Large-scale pipeline projects are underway but face time constraints and last-mile delivery challenges.
• The Role of SSLNG
  • SSLNG, exemplified by GAIL’s Vijaipur unit, offers a promising solution for fast gas distribution.
  • GAIL plans to invest in LNG dispensing stations along highways to promote LNG as an automotive fuel.
• Mechanics of GAIL’s Vijaipur SSLNG Facility
  • The facility includes treatment skids and liquefaction skids for converting natural gas to LNG.
  • LNG produced is dispatched to nearby areas for city gas distribution networks and proposed LNG filling stations for vehicles.
• SSLNG Use Cases and Business Case
  • SSLNG can supply LNG directly to industrial consumers, reducing dependency on pipelines.
  • Petronet LNG Ltd. has been a key player in promoting SSLNG and using LNG as a fuel for trucks and buses.
• LNG as Fuel for Transport
  • LNG is seen as a cleaner and cheaper alternative to diesel for heavy-duty trucks and buses.
  • Challenges include the availability of LNG-powered vehicles, infrastructure, and financing.
• Initiatives by Companies
  • Companies like GAIL and Petronet are working to build the LNG ecosystem and make it viable for transporters.
  • Collaborations with vehicle manufacturers and establishment of LNG dispensing stations are part of these efforts.