Petronet-LNG puts faith in R-LNG by road

Vol 16, PW 8 (01 Nov 12) Midstream & Downstream

Petronet-LNG is convinced transporting LNG by road in cryogenic tankers is the future.

Over the next two years the BSE-listed LNG importer plans to double the number of truck loading bays at Dahej to six and sharply increase the flow of LNG-laden cryogenic trucks moving out from its 10m t/y terminal at Dahej. “Demand for R-LNG is rising,” says Petronet-LNG.

“Most demand is from rural areas without gas pipelines.” Sales figures posted by Dahej offtakers IndianOil and Bharat Petroleum confirm the trend.

Together they loaded 689 trucks with LNG in 2010-11 to sell to customers across Gujarat, Maharashtra and Karnataka. This almost doubled to 1165 trucks in 2011-12.

Encouraged by the success, Petronet-LNG wants to enter the LNG by truck business itself, with company teams studying gas demand in remote areas of Gujarat, Maharashtra, Karnataka, Madhya Pradesh and Rajasthan. “Supplying LNG by truck is possible to any customer within 800-km radius of Dahej,” adds Petronet-LNG.

“We have lined up several such customers.” Dahej’s first truck loading bay was commissioned on August 9, 2007 under a successful pilot project that encouraged the addition of two more bays.

Together Dahej’s existing three bays can handle 2500 truck loadings every year. Add another three bays and this will rise to 5000 or 10 to 13 trucks a day.

Petronet-LNG hopes to commission the new truck loading bays by 2014. Expect them to be ready in time to greet the $590m Phase-III expansion of Dahej from 10m t/y to 15m t/y by 2015.

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