The Hindu Business Line : IOC pilot project to deliver LNG at doorstep

New Delhi, Aug.28 Indian Oil Corporation Ltd., (IOC) has commissioned pilot projects offering ‘LNG at the doorstep’ for use in captive power and industrial furnace applications. Liquefied natural gas (LNG), a cryogenic liquid fuel with high energy density, is the purest form of natural gas.

The idea from IOC has been introduced with technology support from Chart Industries Inc, USA. It offers LNG to customers located away from natural gas pipelines at their doorstep, the company said.

Schott Glass at Jambusar in Gujarat and H&R Johnson at Pen, Maharashtra, became the first customers of the new concept, which involves making LNG available to the end-users through a cryogenic transportation system, storage in a cryogenic tank and onsite re-gassification through ambient air vaporisers for use as fuel, the company said.

It can cater to the huge unfulfilled requirements of natural gas customers in the country not connected by pipeline. According to Mr B.M. Bansal, IOC’s Director (Planning & Business Development), “It is only the first among many technology innovations LNG marketing is likely to see in India.”

Ministry support

Support of the Ministry of Petroleum & Natural Gas, Ministry of Commerce & Industries, the Petroleum & Explosives Safety Organisation, Petronet LNG Ltd., and other stakeholders has resulted in the landmark achievement that would benefit many industries, he said.

With natural gas emerging as the most preferred fuel of the 21st century due to its inherent environment-friendly nature, greater efficiency and cost-effectiveness, its global demand is rising sharply. Natural gas is also gaining ascendancy in India’s energy security plans. Having entered natural gas business in August 2004, IOC is targeting sale of two million tonnes in 2007-08, up from 1.63 million tonnes in 2006-2007.

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