Selling LNG direct to users is the way to go...

Vol 20, PW 11 (23 Feb 17) Midstream & Downstream

Little-known Vadodara-based cryogenic vessels manufacturer Cryogas is preparing to target 1200 Gujarat factories through its nascent direct LNG retail business.

Cryogas managing director Nayan Pandya tells this report his group company LNG Express will commission its pilot LNG storage and supply facility on 60,000-sq feet of land at Waghodia village 25-km east of Vadodara in April. "Waghodia is strategically located and offers good business prospects," says Pandya.

LNG Express will set up a 35,000 litre LNG storage facility and target nearby agro-chemicals, engineering, packaging, pharmaceuticals, rubber, plastics, electrical and engineering factories. "No gas pipeline connects the region," adds Pandya.

LNG will be supplied to factories in 180-kg and 400-kg cryogenic cylinders. Separate re-gasification facilities are not needed as these cylinders known as 'liquid gas packs' have in-built re-gasification facilities.

Pandya believes customers will welcome the 20 to 25% cost savings over commercial LPG. LNG will also be supplied to the Gujarat Industrial Development Corporation estate within Vadodara's Makarpura area where no piped gas is available.

More, LNG will be converted to CNG at the Waghodia station and supplied as fuel to cars passing through the area on their way to Madhya Pradesh or Rajasthan. IndianOil will supply 9000 t/y LNG to Waghodia from Dahej at a floating crude-linked price.

Cryogas has also tied up with IndiaOil to set up a similar station converting LNG to CNG car fuel at Nashik in Maharashtra.