VLNG solution for Kochi LNG terminal revival

Vol 20, PW 1 (22 Sep 16) Midstream & Downstream

Where some see a problem others see an opportunity.

And so it is with Delhi-based newcomer VLNG, which aims to capitalise on the embarrassing underutilisation of the Kochi LNG terminal because of the lack of pipeline connectivity. Speaking to PETROWATCH company project head Vidur Singhal says VLNG will offer LNG transportation solutions: namely transporting LNG by truck or by barges up and down the coastline.

"Our target is to utilise the Kochi terminal," he says. "We'll be doing a 'milk-run'.

Customers will have to set up their own regasification facilities but I'm confident they will be happy to do this once they see the long-term economics." Singhal explains that his company has been studying the market for several years and believes the time is ripe to act because LNG cryogenic and transportation technology is becoming cheaper. Singhal claims VLNG is a "first mover" but he expects to see the growth of 'small scale LNG supply chains' as India's gas market matures.

For now VLNG plans to focus only on supplying LNG along the east coast. "On the west coast there are many terminals operating," he adds.

Singhal clarifies that Kochi isn't the only LNG source the company is considering and that it might look at other projects which are similarly 'stranded'. "We might even bring LNG from Singapore," he adds.

Singhal show-cased VLNG's model while speaking at the Pandit Deendayal Petroleum University Energy Conclave on September 10.