GAIL to promote LNG as transport fuel; to set up small-scale units

State-run GAIL on Wednesday said it will set up small filling stations for liquefied natural gas (LNG) as India’s largest gas utility aims to tap the growing market for use of the commodity, particularly in the long haul heavy duty logistics sector.

At the company’s shareholders’ meeting, GAIL Chairman SK Gupta said the Maharatna is working on creating a LNG supply value chain to develop new markets and enhance consumption.

The development assumes importance as LNG is considered a greener alternative to diesel-run vehicles and can help reduce pollution and emissions. Besides, it will help in increasing use of natural gas and raising its share in India’s energy mix to 15 per cent from around 6.7 per cent currently.

Transport fuel

“In a first-of-its-kind initiative in India, your company is setting up small scale LNG plants to cater to diversified areas viz., Geographic Areas (GAs) not having connectivity to the pipeline, business of LNG as a transport fuel and monetising gas from stranded fields,” GAIL chief said.

For this purpose, GAIL has procured two liquefaction skids of around 16-18 million tonnes per day capacity. The skids are portable (Plug & Play) and scalable liquefaction units and are likely to be commissioned shortly, he added,

“Additionally, GAIL is developing an LNG supply value chain to develop new markets and increase consumption of natural gas in the country. The present focus is on developing a retail LNG network and installation of infrastructure inclusive of LNG dispensing stations, small scale LNG skids, etc to increase its reach to newer customer segments,” Gupta said.

LNG-powered vehicles

GreenLine, which runs India’s largest fleet of LNG-powered heavy commercial vehicles, believes that LNG is one of the best transition fuels for long haul transportation in India.

Speaking to businessline, GreenLine CEO Anand Mimani said: “We have got an overwhelming response from our customers and they are very supportive with the idea of going green.”

LNG emits 30 per cent less CO₂, 100 per cent less Sulphur Oxides (Sox), 59 per cent less Nitrogen Oxides (NOx) and 91 per cent less Particulate Matter (PM), he added.

More importantly, as the transport sector is growing at a CAGR of 10 per cent, which will add to pollution. This can be checked with LNG. LNG-powered trucks make 30 per cent less noise compared to diesel vehicles, Memani noted.

On use of LNG-fired vehicles in transport, he said: “The range that we get with a 40 tonne payload on a 55 tonne vehicle is over 1,200 km in one fill of LNG, which is fantastic. Today, our trucks are already operating between Gujarat, Rajasthan, Maharashtra and Tamil Nadu. There are LNG stations available in these states and we have over about 135 LNG-powered vehicles. Every month, we are trying to increase it by around 25-50 vehicles.”

GreenLine vehicles have been deployed with leading companies such as UltraTech Cement, Tata Steel, Nestlé, JSW Cement, Dalmia Cement, JK Lakshmi Cement, Reliance, Delhivery and JSPL, he added.

The 55-tonne vehicle with a full tank of LNG, which is around 390-400 kg, travels for about 1,200-1,400 km based on terrain and load.

On expansion of LNG as a transport fuel, Memani explained that any new business takes time to mature and LNG as a fuel as well as a business will take another year or so to mature.

“In long run, any one betting on it should get the necessary benefits. It is the future fuel, at least for a decade, till green hydrogen ecosystem develops. We believe that EVs are a good solution for short hauls for both heavy or light duty. However, LNG is a very good transition fuel for long haul heavy duty vehicles,” Memani added.

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