Following clearance from the Petroleum and Natural Gas Regulatory Board (PNGRB), the Indian Gas Exchange (IGX) began offering small-scale LNG(ssLNG) transactions on its platform.
This action is a major step in the right direction toward meeting the demand for natural gas in places not served by the national gas infrastructure.
In order to meet the increasing gas demand from businesses and CGD (City Gas Distribution) organizations without access to pipeline networks, ssLNG contracts were introduced on IGX.
They may now purchase liquefied gas at cheap prices under daily, fortnightly, or monthly contracts via LNG vessels thanks to ssLNG, said the official release.
This contract is first introduced at the LNG Terminals in Dahej and Hazira. It will later be introduced at more terminals, including those at Dhamra, Mundra, Ennore, Kochi, and Vijaipur’s on-land ssLNG stations.
Speaking at the occasion, Anjani Kumar Tiwari, Member, PNGRB said, “Small-scale LNG serves as the cornerstone for our gas-based economy, enabling us to expand our reach beyond traditional pipelines. On supply side, it can bring gas from remote and difficult fields and on the demand side, it can help an industry source gas which is not connected to the gas grid. With this vision, we provided approval to IGX for launching ssLNG contracts on their platform. PNGRB endeavors to be a facilitator to support the growth of ssLNG in India by providing a comprehensive regulatory framework. We will also be continuously evaluating the present regulations and making amendments to support the industry in navigating challenges.”
Speaking at the occasion, D.K. Saraf, Ex-Chairman, PNGRB said,” While pipelines stand as the optimal means for gas transportation, the geographical expanse of our nation poses challenges in reaching every corner. Small-scale LNG emerges as a solution, bridging this gap and enabling customers to access the advantages of natural gas, thus facilitating a transition towards cleaner energy sources. I extend my sincere compliments to IGX for collaborating with PNGRB in launching ssLNG in India. Together, we can pave the way for widespread adoption of small scale LNG and create a cleaner, more sustainable energy future for all.”
Speaking at the occasion, Rajesh K Mediratta, MD & CEO, Indian Gas Exchange said, “We envision IGX providing marketplaces for competition, flexibility and transparent price discovery. The introduction of ssLNG contracts is to fill the void in ssLNG space. With the demand for road-transported LNG projected to increase substantially over the coming years, our initiative will provide city gas distribution networks, industries & LNG dispensers a competitive gas pricing that will optimize their costs. By facilitating the trading of ssLNG contracts, we are not only enabling the efficient transportation of larger volumes of natural gas via trucks but also widening access to a cleaner fuel across the country.”
Transforming LNG Services in India with ssLNG
The nation’s natural gas supply is mostly provided by pipelines. Because of this, businesses and industries without access to the grid mostly use trucks to transfer LNG. Throughout the following five years, it is anticipated that the demand for LNG delivered by road would rise to 5 MMSCMD.
ssLNG contracts offer a mutually beneficial arrangement for buyers and sellers. Sellers might use it as a platform to come and exchange LNG.
Larger amounts of liquefied natural gas may be carried by trucks, which may make it financially feasible for purchasers who are not linked to pipelines. Moreover, it would provide an equitable and transparent procurement procedure along with improved payment security.
