Published on: March 19, 2024

SMALL-SCALE LNG (SSLNG)

SMALL-SCALE LNG (SSLNG)

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.