LNG-by-truck lifeline for Mundra terminal

Vol 27, PW 26 (16 Jan 25) Midstream, Downstream, Renewables
 

Hardly used, the outlook is improving for Gujarat's stranded Mundra terminal, with more LNG going out by truck than ever before.

"In 2023-24, we sent out 647 trucks carrying LNG to customers," says a GSPC source. Mundra began operations on March 1 (2020), with LNG-by-truck deliveries beginning in October 2021.

By March 31 (2024), GSPC had sent out 846 truckloads in total from a single loading bay. However, overall capacity utilisation remains far below expectations.

"In 2023-24, Mundra’s capacity utilisation was 15%, and the overall capacity utilisation since the terminal started stands at 22%," we hear. In 2023-24, Mundra received 13 cargoes, and the total cargoes received until March 31 (2024) was just 71.

Meanwhile, GSPC has reported marginal improvement in gas trading volumes. In 2022-23, gas trading volumes stood at 11.51m cm/d.

"In 2023-24, the volumes improved to 11.61m cm/d though volatility continued in the global gas market along with increasing competition in the Indian market," adds our GSPC source. Also, in 2023-24, GSPC successfully bid for domestic gas from the KG basin and Rajasthan, adding 2.04m cm/d of competitively priced gas to its sourcing portfolio with terms ranging from 15 days to five years.

This includes 230,000 cm/d from Reliance’s offshore KG-DWN-98/3 (D-6) block; and another 490,000cm/d also from KG-DWN-98/3. GSPC secured 90,000 cm/d from Vedanta’s RJ-ON-90/1 block, while subsidiary company GSPC Energy secured 1.23m cm/d from the same Vedanta block.

During the same year, GSPC negotiated term extensions until 2028 with state-owned fertiliser factories for over 2m cm/d on a firm basis. "We were also successful in marketing 500,000 cm/d to four new customers for terms ranging from one to five years," we hear.

These customers are BSE-listed Deepak Fertilisers, glass manufacturer Vishakha Glass, Piramal Glass and well-known detergent manufacturer Nirma. GSPC sourced seven cargoes from Adnoc LNG during the year and received a customs duty rebate of 2.75%.

"Adnoc's cargoes are cheaper by 2.75% straight away because of a government-to-government deal (the India-UAE Comprehensive Economic Partnership Agreement (CEPA) signed on February 18, 2022)," we learn.