Truck-delivered R-LNG focus for Essar at Haldia

Vol 20, PW 15 (20 Apr 17) Midstream & Downstream

Essar is focusing on truck-delivered R-LNG to local industries from its proposed small-scale 1m t/y LNG receiving facility at Haldia port in West Bengal.

"All the demand centres are well within the catchment area for road tankers," says Essar, in a 35-page pre-feasibility report for the estimated Rs450cr ($70m) project. "IndianOil's (Haldia) refinery is within 20-km; Matix Fertilisers is 250-km from the port and Kolkata city is 130-km." Essar wants to set up a maximum 24 bays for 'iso-container' laden LNG trucks across three parking slots of eight trucks each.

"If initial demand is low," adds Essar, "only four bays will be developed and as demand increases more bays will be added." With no gas pipeline connectivity in sight, Essar believes small industrial users will welcome R-LNG delivered by truck. "Even after gas pipeline connectivity," adds Essar, "small customers may prefer servicing by road for better flexibility." Only when GAIL lays its proposed Haldia to Jagdishpur pipeline, says Essar, will it consider setting up a 7m cm/d (250m cf/d) regassification facility and piping R-LNG to demand centres further afield.

"Once the pipeline is laid," says Essar, "it will connect Haldia to east and north India markets." On the supply side, Essar admits the narrow eight-metre draft size of the HOJ-1 and (under construction) OT-2 jetties allows it to receive only small LNG tankers of maximum 50,000 cubic metre capacity.