Shell and Total study LNG by road supply

Vol 18, PW 9 (18 Dec 14) Midstream & Downstream
     

Shell and Total-promoted Hazira-LNG is planning to copy rival Petronet-LNG and begin transporting LNG by truck to customers.

Hazira LNG began an in-house study in the middle of this year to examine the feasibility of sending out LNG laden trucks from its 5m t/y Hazira terminal. “Shell and Total think there is a good business opportunity in supplying LNG by trucks,” reports a source.

But the company is only looking at areas unconnected by gas pipelines within a 300-km radius of Hazira. “It isn’t economically viable to dispatch LNG by cryogenic tankers beyond 300-km,” adds our source.

“Hazira LNG is studying the market and gas demand.” When contacted a Shell source flatly denied any such plans.

“If there are plans I’m unaware of them,” he said. “Even if there are plans Hazira doesn’t have a truck loading bay.

” Another Hazira LNG source however confirms the company is evaluating an LNG-by-truck model similar to the one adopted by Petronet-LNG. Whatever the truth, the number of truck loading bays at Hazira will depend on industry demand.

“Unless you make R-LNG competitive to liquid fuel,” cautions a source, “the model won’t work.” Yet it seems to be working just fine for Petronet-LNG, which on September 25 inaugurated a truck loading bay at its Kochi terminal with Linde.

Petronet-LNG is using three 10-tonne cryogenic tankers from INOX to ferry LNG from Kochi to contraceptive manufacturer HLL Lifecare.