LNG

Indian liquefied natural gas imports surged for another month by just over 12 percent and by more than 14 percent for the fiscal year so far, helped by lower prices and higher demand and despite more competition from increased output from Bay of Bengal domestic gas resources.

The decline in Indian liquefied natural gas imports slowed to 1.8 percent from the previous month’s 24 percent fall as cargoes for West Asia were expensive when competing with Europe and South America and as Indian domestic gas demand remained flat.

Mahanagar Gas Limited (MGL), the growing Indian city-gas distribution company, has signed an agreement with Baidyanath LNG (BLNG) to give some momentum to the expansion of a liquefied natural gas fuel station network with a build-out starting from the western state of Maharashtra.

MGL, which is listed on the Bombay Stock Exchange, is the sole authorized distributor of compressed natural gas (CNG) and Pipeline Natural gas (PNG) in the city of Mumbai and its adjoining areas as well as in the city of Raigarh, located in the land-locked central Indian state of Chhattisgarh.

BLNG is an LNG fuel pioneer and opened India’s first LNG fuel station almost two years ago at Dighori and which was aimed at LNG-powered vehicles using the national highways around Nagpur, one of the main cities in Maharashtra.

Until the BLNG fuel station opened, the only LNG fuelling point were at India’s LNG import terminals where truck-loading stations are open to contracted customers only, though cannot supply random members of the public.

Infrastructure

“We are pleased to enter into this arrangement with BLNG for development of LNG infrastructure,” said Ashu Shinghal, Managing Director, of MGL.

“Both parties have their own set of skills and capabilities which can be harnessed to offer seamless solutions to the customers. MGL has always played a constructive role in the development of an environment which can facilitate faster adoption of cleaner fuel,” explained Shinghal.

MGL already has city-gas connectivity to approximately 2.07 million domestic households, which is a high figure for India, and operates about 300 filling stations mainly selling compressed natural gas (CNG).

The company additionally has more than 6,400 kilometres of pipelines and associated infrastructure.

BLNG Chief Executive Vaddadi Subbarao said he was delighted to enter into this agreement with MGL for the development of an LNG corridor to be initially focused on the Maharashtra region.

“This agreement provides us with an added impetus in our mission to create a wide network of these LNG stations across Maharashtra. We look forward to enabling India’s mission of decarbonizing heavy trucking by ensuring uninterrupted LNG supply on key trucking routes,” Subbarao explained.

The Baidyanath group, a private company, distributes medicines, food and cosmetics as the main part of company activities.

While its energy unit operates just two LNG fuel stations at the moment it plans to set up around 15 stations in the Vidarbha region of Maharashtra.

MGL in addition to being BSE-listed counts among its shareholders Gas Authority of India (GAIL) with a 32.5 percent stake and the government of the state of Maharashtra, which owns 10 percent of MGL. 

Indian liquefied natural gas imports continued their decline in 2022 because of high prices and competition from the European market, while domestic natural gas output rose amid a fall in the nation’s gas consumption.

Indian imports of liquefied natural gas dropped for a ninth straight month, though the rate of decline slowed to 3.5 percent even as LNG prices increased while the fall in cargo deliveries was offset by another rise in domestic gas output.

Indian liquefied natural gas imports dropped by over 7 percent, even more than in the previous month, as the costs of LNG shipments soared and the nation’s supply security was enabled by offshore domestic natural gas pipeline supplies that jumped more than 26 percent.

Trelleborg of Sweden, a maker of liquefied natural gas transfer and mooring equipment, has received certification from the Petroleum and Explosives Safety Organization of India as the Asian nation moves to develop more LNG terminals on the East and West Coasts with highest-grade safety standards.

Trelleborg said its marine Quick Release Hook mooring systems received the certificate from the body that sets the rules for equipment containing electrical systems at new or upgraded LNG facilities in the country.

The certification signifies Trelleborg is now the largest accredited docking and mooring equipment manufacturer in the region.

“We set out on a 12-month initiative with our certification agent and support from key supply chain partners, to record technical documentation regarding all electrical systems and enclosures needed to be assessed for hazardous area operation suitability,” said Richard Hepworth, President of Trelleborg’s marine and infrastructure operations.

“As a result, we are delighted that Trelleborg Quick Release Hook mooring systems are now certified for use in the Indian market, and are therefore fully compliant with Indian laws and regulations that govern the operation of LNG facilities,” added Hepworth.

“As the largest accredited docking and mooring equipment manufacturer, customers in the region requiring Quick Release Hooks can be confident that our equipment is certified and meets all safety standards,” he stated.

Hepworth noted that the accreditation means that engineering companies and LNG terminal owners in India can avoid unforeseen budget overruns and schedule delays due to compliance issues.

Safety is paramount across the oil and gas industry with a particular focus in the LNG sector.

Transportation of combustible materials must be managed carefully to avoid the release of gases or vapors into the environment, which can potentially result in explosions, serious injury to personnel and damage to equipment and assets in the surrounding area.

“Trelleborg applies this philosophy at every interface across the LNG transfer chain,” said the company.

“Building on decades of experience in the LNG industry, Trelleborg is an experienced and reliable partner to optimize the business model of any LNG transfer operation and support safe, efficient and cost-effective performance,” it added.

“With standards and guidelines for equipment utilized in port operations developed by industry bodies in many countries and regions, it is vital that operators ensure their terminals meet the highest safety standards anywhere in the world,” Trelleborg declared.

Indian liquefied natural gas imports last month surged more than 9 percent along with domestic natural gas production, up more than 19 percent, as economic activity proved to be more resilient as the nation emerged from the worst of the Covid-19 pandemic.

Sri Lanka has launched a tender process to secure a floating storage and regasification unit to start imports of liquefied natural gas offshore the port of Kerawalapitiya, located north of Colombo, for use by the power industry.

Indian Prime Minister Narendra Modi will formally open the long-awaited 450-kilometres natural gas pipeline from the Kochi LNG import terminal in the southwest state of Kerala to the port city of Mangaluru in the state of Karnataka further north.