Customers like the idea of LNG by tanker truck

Vol 9, PW 14 (20 Oct 05) Midstream & Downstream

LNG supplies by road tanker are expected to pick up significantly from late 2008 when Petronet-LNGs Dahej terminal capacity will be doubled to 10m t/y.

Eventually, it is estimated that 3m t/y LNG can be transported by road tankers to factories located in places where no gas transmission pipelines have reached. Aware of the potential, Indian Oil and Petronet-LNG are working overtime to resolve outstanding legal and financial issues and to ensure that delay is kept to a minimum.

Current plans envisage the launch of a pilot project with five transport containers and two storage containers. On 15th October, the first batch of containers landed in Mumbai port from the Becin factory of Ferox on the outskirts of Prague in Czechoslovakia.

Each transport container can carry 36,000 litres of LNG at atmospheric pressure while each storage container can hold 100,000 litres of LNG. Ashok Leyland built trailer trucks from the companys factory outside Chennai will carry the transport containers.

A second batch of containers is expected in Mumbai in the third week of November and the third and final batch about a month later. US-based Chart Industries is supplying the technology for this operation.

Only one crucial long-lead item needs to be ordered: reducing valves used to tap LNG from the 16-inch pipe linking the Dahej LNG storage tank to the regassification unit. Original plans will see the pilot project run for a month.

Once 30 days uninterrupted supply is ensured the pilot project will end and move into the commercial phase, we learn. Indian Oil will supply 2400 tonnes of LNG per month for the pilot project.

Of this, Welspuns towel factory will initially get 1200 tonnes per month rising to the entire 2400 tonnes. When the pilot project ends we will sign up other customers, reveals IOC.

Weve begun talks with customers and a large number have already expressed interest.

LNG Summit