Haldia Dock Complex earmarks land for LNG storage facilities

The Dollar Business Bureau

The Haldia Dock Complex under Kolkata Port Trust has been allotted about 10 acres of land in the proximity of Haldia Oil Jetty No. 1 for 30 years to set up LNG storage facilities, where it plans to install unloading arms and lay pipelines through tender cum auction.

“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,” Ministry of Shipping said in a statement.

“This is an important development in context of the recent efforts of the Ministry of Shipping to reduce logistics cost and achieve the COP21 targets on cutting down pollution by introducing the use of LNG as fuel for barges,” it said.

The LNG storage facility is projected to save around 20% on fuel and reduce about 20-25% on carbon dioxide emissions and 90% on nitrogen/sulphur oxide emissions. This is also a part of the government’s efforts to encourage transportation on inland waterways and coastal shipping.

The government has already started to take measures to facilitate LNG movements and its storage along the inland waterways. Only a few countries are currently using LNG powered barges.

“The Ministry of Shipping has been regularly holding discussions with Petronet LNG Ltd. (PLL) and Inland Waterways Authority of India (IWAI),” it added.

PLL is preparing a detailed feasibility report for establishing LNG facilities at Ghazipur, Haldia, Patna and Sahibganj on NW-I (Ganga).

IWAI has already requested to share the cargo and pattern of traffic details on NW-1 in order to enable PLL to estimate the demand for LNG.
Other states such as Goa and Maharashtra too have a potential for LNG barges on their waterways. PLL has also been requested to explore the possibilities of LNG barges in those regions.