Shipping ministry to procure LNG vessels, to provide LNG storage along National Waterway-1
n a bid to help India shift towards liquefied natural gas (LNG)-based clean mode of transport on the national waterways, the ministry of shipping plans to procure LNG-fuelled vessels.
The ministry of shipping had signed a memorandum of understanding with the Inland Waterways Authority of India (IWAI) and Petronet LNG Ltd at the Maritime India Summit in April, with the objective of promoting the usage of LNG barges on National Waterway-1 on the river Ganga.
Petronet LNG imports LNG and set up LNG terminals in the country. Four of the public sector companies in the hydrocarbon sector of the countryOil and Natural Gas Corp. Ltd, Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and GAIL (India) Ltd own 50% of the equity in Petronet LNG, while 10% is held by ENGIE and the balance 40% is held by the public.
“Petronet LNG is looking at various locations on the National Waterway-1 where it can have bunkering storage facilities. The bunkering will be at the multi-modal terminals. They are in the process of developing some supply chains and distribution channels. We can only provide them space in our terminals or construction of the bunkering. However, we are seriously considering procurement of LNG vessels. They can be built in India also. This is a World Bank-funded project so there is an international bidding process,” said IWAI vice-chairman PravirPandey.
According to a statement issued by the ministry of shipping on 13 June, IWAI and Petronet LNG have been asked to plan and coordinate their work plans in a manner that the LNG barges could commence navigation on the National Waterway-1 by December 2018.
“Petronet LNG will design, construct and operate LNG unloading, storage, bunkering and reloading facilities on the national waterways. Action has already been initiated for preparing detailed feasibility report and it is expected to be completed by December 2016. Petronet LNG plans to set up a base depot at Haldia and fuelling stations at Sahibganj (Jharkhand), Patna (Bihar) and Ghazipur (Uttar Pradesh),” noted the statement.
The ministry of shipping under its JalVikasMarg Policy is developing the National Highways-1 on river Ganga from Haldia to Varanasi for navigation with a World Bank’s assistance of Rs.4,200 crore.
The ministry has spent around Rs.80,000crore for various projects aimed at modernising and mechanising the shipping sector.
Experts believe the plan could add value to the economy.
“India is a significant importer of LNG with around 70 million tonne being imported annually. Shipyards such as Cochin are actively looking to manufacture LNG carriers… The technical feasibility of LNG vessels operating along National Waterways-1 is to be understood. It remains to be seen how the plan of integrating their operation with pipeline and bunkering terminals network is going to be executed.” said Hemant Bhatt, managing partner and head of HMSA, a consultancy.
According to Pandey, cargo traffic projections on the National Waterways-1 by 2022 have been pegged at 21 million tonne (MT) with projections going up to 55 MT by 2025.
“We want to emulate China’s model on LNG. We will provide land bunkering facilities and have identified some spots on the Kalughat terminal stretch and new Haldia terminal for that. However, they have not been finalised yet. The study has not been done on that yet and it is at a very preliminary stage,” an official at IWAI said requesting anonymity.