LNG is the future for long-haul trucks: GAIL
Forget electric vehicles - GAIL is betting on the growth of LNG fuel for long-haul trucks in India.
GAIL plans to set up 24 LNG stations and five L-CNG stations nationwide and is poised to hire an Engineering and Project Management Consultant (EPMC). When GAIL opened price bids in the last week of June 2024, MECON bid the lowest, at about Rs10cr ($1.1m), following the tender release on May 8 (2024).
By May 27 (2024), GAIL received three bids: MECON, Engineers India and Tractebel Engineering. "We have evaluated the bids," confirms a source.
"But are yet to award the contract." If and when it secures the contract, MECON will be responsible for the overall station design and detailed engineering and assisting in procuring packages for CNG or LNG dispensers, cascades, tubes, fittings and other equipment.
MECON will also have to prepare tender documents, plan and supervise construction, advise on financial, social and institutional matters and sign contracts to commission the stations and dispensing facilities. Included in its remit will be helping to obtain statutory approvals, including from the PNGRB.
"We have finalised a few locations," adds our source. "But for others, we are talking to landowners."
Our source highlights the lack of LNG-fired vehicles in the country and believes that offering LNG at a discount to diesel will attract truck owners. "This will encourage truckers to switch to LNG," he stresses.
"Any additional cost of converting from diesel to LNG can be recovered in a reasonable timeframe." GAIL believes electric vehicles (EVs) are unsuitable for long-haul journeys.
"EVs have a heavy battery weight; they're a poor choice for long-haul travel," he says. "Hydrogen could work, but it will take years before hydrogen dispensing infrastructure comes up."
CNG-fired vehicles have similar problems. "CNG cylinders are heavy, and for long-haul travel, a CNG-powered vehicle carries more steel than gas," says a source.
"LNG is the only alternative to diesel."