Gas Authority of India Limited (GAIL) has successfully executed the world's first ship-to-ship Liquefied Natural Gas (LNG) transfer to reduce shipping costs and significantly cut emissions. GAIL has contracted 5.8 million tonnes per annum of LNG (natural gas super-cooled to liquid form) from the US. The company brings this quantity to India through LNG ships. The ship normally travels a distance of about 19,554 nautical miles for a round trip to transport LNG from the US's Sabine Pass to India via the Suez Canal and Gibraltar.

The journey takes approximately 54 days and emits approximately 15,600 tonnes of CO2. Emissions are generally controlled by using the latest technology or by changing the destination of the cargo. However, GAIL's innovative contractual arrangement whereby ships follow an optimized path has resulted in a significant reduction in CO2 emissions.

GAIL's innovative ship-to-ship transfer

  • In a recent operation, GAIL's chartered ship, Castillo de Santisteban, performed a ship-to-ship (STS) transfer in the middle of its voyage.
  • The LNG cargo was transferred to another chartered ship, QatarGas's Al Gharrafah, making it the world's first STS transfer.
  • The Qatargas ship originally departed for Dahej, Gujarat to offload cargo planned for GAIL's ship, later returning to the next loading port off Gibraltar.

Significant Environmental and Economic Benefits

  • This innovation resulted in a significant savings of approximately 8,736 nautical miles, equivalent to 7,000 tonnes of CO2 emissions.
  • Additionally, it reduced the journey period of GAIL's chartered ship from 54 days to about 27 days.
  • The optimized profit for GAIL in this charter exceeds US$ 1 million, which is a win-win situation for both GAIL and QatarGas.

Benefits of LNG transfer

  • GAIL officials suggest that the proof of concept demonstrated in this operation has the potential to be scaled up to the entire LNG shipping industry.
  • By implementing unique contractual arrangements, owners and charterers can significantly reduce shipping distances, resulting in substantial carbon emissions savings.
  • Scaling up this concept could lead to distance savings of 2,09,664 nautical miles per year, as well as emissions of 1,67,731 tonnes of CO2.
  • Furthermore, it may contribute to a significant increase in vessel utilization.
  • This innovation is in line with GAIL's commitment towards sustainability and can pave the way for transformational change in the LNG shipping industry.

Recognition and Awards

  • GAIL's commitment to innovation, coupled with its recent achievements, has earned the company the ‘Innovation Award – India & Midstream Project of the Year’ at the Asian Oil & Gas Awards.
  • This recognition highlights GAIL's leadership in adopting pioneering solutions to address environmental and economic challenges in the oil and gas sector.

Floating CNG Station and Upcoming Initiatives

  • Apart from STS transfer, GAIL has made progress in environmental initiatives, including setting up the first floating Compressed Natural Gas (CNG) station.
  • Located on the Ganges in Varanasi, the station serves as a refueling point for boats running on eco-friendly fuel.
  • CNG distribution infrastructure manages variable water levels and has resulted in the conversion of diesel and petrol engines to CNG-powered engines.

Information about GAIL (India) Limited

GAIL (India) Limited (formerly known as Gas Authority of India Limited) is a central public sector undertaking owned by the Ministry of Petroleum and Natural Gas of the Government of India. It has the following business segments: natural gas, liquefied natural gas, liquid hydrocarbons, liquefied petroleum gas transmission, petrochemicals, city gas distribution, renewable energy including solar and wind, exploration and production, geltel and power generation. GAIL was granted Maharatna status by the Government of India on 1 February 2013, a status shared by 11 other public sector undertakings (PSUs).

GAIL owns and operates a network of approximately 13,722 km of natural gas pipelines and is currently executing approximately 6,000 km of pipeline projects of its own as part of the National Gas Grid and approximately 2,000 km of pipeline projects through two joint ventures. doing. PNGRB has authorized the PSU to build the 1,755 km long Mumbai-Nagpur-Jharsuguda pipeline.

  Last update :  16 November 2023
  News Category :  Economics
  Post Category :  November 2023