India’s Haldia dock gets go-ahead to build LNG storage facilities

The Haldia Dock Complex has set aside around 10 acres of land for a period of 30 years to build up LNG storage facilities, including laying of pipelines and installing unloading arms, the ministry said.

“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,” the ministry stated.

It added that the use of LNG by barges is anticipated to reduce carbon dioxide emissions by 20-25% and nitrogen/sulphur oxides emissions by 90%, as well as cut back on the use of high-sulphur fuel by around 20%.

“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,” the ministry stated.

Meanwhile, Petronet LNG is in the process of preparing a detailed feasibility report for setting up LNG facilities at Haldia, Sahibganj, Patna and Ghazipur as per a memorandum of understanding signed with Inland Waterways Authority of India (IWAI) in April this year.

“Petronet LNG 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,” the shipping ministry said.