The big promise of small-scale LNG as fuel for India, with first SSLNG plant commissioned
- March 21, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
The big promise of small-scale LNG as fuel for India, with first SSLNG plant commissioned
Subject: Science and tech
Section: Msc
Context:
- Union Minister for Petroleum and Natural Gas Hardeep Singh Puri dedicated to the nation India’s first small-scale liquefied natural gas (SSLNG) unit at GAIL (India) Ltd’s Vijaipur complex in Madhya Pradesh.
Why small-scale LNG?
- The Indian government is promoting the use of natural gas, aiming to increase its share in the primary energy mix to 15% by 2030, up from just over 6% currently.
- However, expanding gas consumption faces challenges, particularly in transporting gas to areas not connected by the natural gas pipeline grid, affecting its use in long-haul transportation.
- To address these challenges and the slow progress of large-scale pipeline projects, small-scale LNG (SSLNG) emerges as a viable solution. SSLNG facilities, like the one at Vijaipur, are expected to significantly alter the natural gas landscape in India. Additionally, GAIL is investing Rs 650 crore in developing dispensing stations along major highways, including the Golden Quadrilateral, to facilitate the use of LNG as an automotive fuel.
What exactly is SSLNG?
- SSLNG, a term with no standard global definition in its nascent stage, refers to the process of liquefying natural gas for transportation in smaller-scale operations, distinct from the large-scale infrastructure typically associated with LNG.
- This involves supplying LNG—natural gas in its liquid or super-chilled form—via specialized trucks and small vessels to industrial and commercial consumers in areas not served by pipelines.
- In cases where the LNG is to be used as compressed natural gas (CNG) for vehicles or piped gas for households and manufacturing, it is regasified using small vaporizers. For direct use in its liquid form, LNG is supplied to end-users without regasification.
- The SSLNG supply chain can originate from large-scale LNG import terminals, where LNG is transported to consumers in cryogenic road tankers or small vessels instead of through pipeline regasification.
- Alternatively, it can start in areas with abundant natural gas supplies or production, where small liquefaction plants are established. An example of this latter approach is the SSLNG unit at Vijaipur, part of GAIL’s largest gas processing facility.
How the SSLNG Unit at GAIL’s Vijaipur Complex Works:
- The SSLNG unit, a Rs 150 crore facility at GAIL’s Vijaipur complex, features SSLNG skids with a total capacity of 36 tonnes per day and associated liquid handling systems.
- It utilizes zeolite pretreatment skids (ZPTS) for removing impurities like nitrogen, water, sulfur, and carbon dioxide from natural gas at about 15 bar pressure.
- The gas is then compressed to around 260 bar in a four-stage compressor and cooled to -60 to -70 degrees Celsius using a propane-based refrigeration system.
- Following expansion, the temperature drops below -140 degrees Celsius, liquefying the gas. The resulting LNG is dispatched via cryogenic tankers for use in city gas distribution networks as CNG and piped gas, and at LNG filling stations for vehicles.
- The unit employs an automated, web-based Supervisory Control and Data Acquisition (SCADA) system for monitoring.
The Business Case for SSLNG:
- GAIL leads the initiative, but most major oil and gas companies in India are exploring this high-growth sector.
- The movement towards SSLNG in India initially gained momentum through Petronet LNG Ltd, the country’s largest LNG importer, which began supplying LNG from its large import terminals in Gujarat and Kerala to small industrial consumers.
- Petronet, backed by GAIL, ONGC, IOC, and BPCL, promotes the use of LNG as automotive and marine fuel, and for city gas distribution networks and industries requiring natural gas.
- The strategy aims to increase LNG consumption nationwide and boost volumes at the Kochi terminal, which has faced challenges due to lack of pipeline connectivity to key consumers.
Using LNG (Liquefied Natural Gas) as a fuel for long-haul trucks and buses is becoming increasingly attractive due to several reasons:
- Environmental Benefits: LNG produces significantly lower carbon dioxide emissions than diesel and emits negligible amounts of particulate matter, nitrogen oxide, and sulfur dioxide, making it a cleaner alternative.
- Economic Efficiency: Vehicles powered by LNG can travel a slightly longer range on similar-sized fuel tanks compared to diesel and benefit from generally lower prices than crude oil, from which diesel is derived. Since India imports only about half of its natural gas needs (as opposed to a much larger proportion of its crude oil), switching to LNG could result in significant foreign exchange savings.
- International Examples: Countries like China have already adopted LNG aggressively in their medium and heavy commercial vehicle sectors, demonstrating its viability.
Challenges in India’s Adoption:
- Lack of availability and higher initial costs of LNG-powered vehicles compared to diesel variants, absence of LNG vehicle financing options, and a nearly non-existent LNG retail infrastructure.
- Efforts to Overcome Challenges: Entities like GAIL and Petronet are actively working to establish a supportive ecosystem for the transition from diesel to LNG.
- This includes collaborations with commercial vehicle manufacturers for trials, discussions with state roadways and truck fleet operators, and the establishment of LNG dispensing stations along highways.
- Indian Oil Corporation (IOC) is also involved in setting up LNG stations, aiming to enhance the LNG infrastructure for vehicles.
Source: IE