Floating Storage Units: Interim Solution for LNG Dispensing at Indian Ports

The Indian government is considering a proposal to establish liquefied natural gas (LNG) dispensing stations for trucks inside ports using floating storage units (FSU) as an interim solution. This plan will guide the development of LNG storage facilities at nine major ports under the control of the Shipping Ministry. Currently, four major ports already have LNG terminals nearby, namely Deendayal Port (Kandla), Chennai, Cochin Port, and Kamarajar Port (Ennore). FSUs are old ships anchored near ports with the capacity to store natural gas.

Major ports in India fall under the jurisdiction of the Shipping Ministry, while the remaining ports, known as non-major ports, are managed by state governments and their maritime boards.

The proposed plan involves utilizing the floating storage units (FSUs) as LNG carriers during the initial period when gas consumption is low. This approach offers the benefit of low capital investment and saves on LNG chartering costs. Once natural gas consumption increases at these ports and more LNG trucks are put into use, the conversion to a land-based terminal becomes easier by installing additional tanks and regasification capacity. This strategy has been successfully implemented in other countries such as Nicaragua, Philippines, Ghana, and Ecuador.

These plans align with India’s objective to decarbonize its ports under the Harit Sagar Green Port Guidelines 2023. The guidelines aim to achieve zero waste discharge from port operations through reducing, reusing, repurposing, and recycling waste. They also address other aspects of the National Green Hydrogen Mission related to ports, such as the development of green hydrogen facilities, LNG bunkering, and offshore wind energy. The Green Port policy also includes incentives for fleet owners to adopt compressed natural gas, LNG, electric, or green hydrogen-powered trucks, with the aim of reducing emissions at major ports.

No tags for this post.

Source .