LNG storage facility to be set up at Haldia dock

LNG storage facilities will be set up at Haldia dock of Kolkata Port Trust as part of efforts to fuel barges with gas for cutting emissions as well as reducing logistics costs.

The Haldia Dock Complex has earmarked about 10 acres of land in the vicinity of Haldia Oil Jetty No 1 for a period of 30 years for setting up of LNG storage facilities, with permission to lay pipelines and install unloading arms through tender cum auction, Shipping Ministry said in a release.

"The project will be undertaken on land lease model by granting lease of land by middle of December, 2016. LNG facilities are expected to be developed within 24 months from date of allotment of land," it said.
 

Use of LNG is expected to save around 20 per cent on fuel. Carbon Dioxide emissions are likely to get reduced by 20-25 percent and nitrogen/sulphur oxide emissions by 90 per cent, the release said.

"The government is therefore taking measures to facilitate the movement of LNG and its storage at places situated along the inland waterways. Only a few advanced countries are using LNG powered barges at present. Therefore in that sense, the development at Haldia Dock Complex can be seen as a very positive one," it said.

The efforts to introduce LNG as barge fuel is part of the overall efforts to promote transport on inland waterways and coastal shipping. Work is already on for construction of terminals and other activities to facilitate navigation on river Ganga under the Jal Marg Vikas.

The statement said the Shipping Ministry has been regularly holding discussions with Petronet LNG Ltd (PLL) and Inland Waterways Authority of India (IWAI).

PLL is in the process of preparing a Detailed Feasibility Report for setting up LNG facilities at Haldia, Sahibganj, Patna and Ghazipur on NW-I (Ganga) as per an MoU signed by them with IWAI during the Maritime India Summit in Mumbai in April this year, it said.

The statement said IWAI was requested to share the details of projections on the cargo and pattern of traffic on NW-1 as per a study conducted for the Jal Marg Vikas Project so as to enable PLL to estimate the demand for LNG.

The construction of LNG barges at Indian shipyards would be entitled to the 20 per cent subsidy through the ship building subsidy scheme whose guidelines have already been released by the Shipping Ministry, it said.

"PLL was also requested to list out in detail the infrastructure support needed for moving to LNG as fuel for barges and specify the milestone for achieving the activities required to be accomplished. The LNG storage hubs may be built along the river Ganga which would facilitate potential gas consumers in the hinterland also as LNG has the potential to replace LPG, Naphtha, and HFO fuel," it said.

PLL has also been requested to introduce LNG barges on waterways in Goa and Maharashtra.