GAIL considers modular LNG foray

GAIL (India) Ltd is working on a strategy to monetise natural gas from small and remote producing fields through LNG route.

The company has tied up with an Australian firm, LNG International, in this regard. The foreign partner will carry out a pre feasibility report for monetisation of the gas from PY-3 field, which is located off the coast of Tamil Nadu.

Proshanto Banerjee, chairman and managing director of GAIL, said the concept of modular LNG is an emerging option for utilisation of natural gas from small or remote fields, where economics of piping the gas to markets is prohibitively costly.

"If we find the model viable, this will open a window of opportunity for commercial use of trapped gas in many parts of the country, most notably in the north-east," Banerjee added.

Modular LNG model could have cost advantage as this excludes elaborate and expensive infrastructure associated with traditional model. The Australian company has carried out similar projects in Australia, Indonesia and Malaysia.