Small Scale LNG – A big idea

Source-This post on Small Scale LNG-A big idea has been created based on the article “The big promise of small-scale LNG as fuel for India, with first SSLNG plant commissioned” published in “The Indian express” on 21 March 2024.

UPSC Syllabus-GS Paper-3- Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

News– The Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has recently dedicated to the nation India’s first small-scale liquefied natural gas (SSLNG) unit at GAIL (India) Ltd’s Vijaipur complex in Madhya Pradesh.

What is SSLNG (small-scale liquefied natural gas)?

1) It refers to gas in its liquid or super-chilled form supplied in specialized trucks and small vessels to industrial and commercial consumers in regions not connected by pipelines.

2) The SSLNG chain can start from a large-scale LNG import terminal from where the LNG can be transported to consumers by cryogenic road tankers or small vessels.

3) The chain can also start at locations with ample natural gas supply or production, where small liquefaction plants can be set up. For ex-The SSLNG unit at Vijaipur.

How does the SSLNG unit at Vijaipur work?

1) There are treatment skids — zeolite pretreatment skids (ZPTS) — and liquefaction skids. They are known as cryo boxes which convert natural gas to LNG.

2) Natural gas is processed in the ZPTS at a pressure of approximately 15 bar to remove non-desirable components such as nitrogen, water, sulphur, and carbon dioxide.
It is then fed to the cryo box, where it is compressed in a four-stage compressor to a pressure of around 260 bar.

3) The gas is cooled by a propane-based external refrigeration system to minus 60-70 degree Celsius. After that, the gas is subjected to expansion so that the temperature falls below minus 140 degrees Celsius and it can liquefy.

4) The LNG is then dispatched by cryogenic tankers to nearby areas for use in city gas distribution networks as CNG and piped gas.

5) The SSLNG unit is controlled by an automated, web-based Supervisory Control and Data Acquisition (SCADA) system, typically used to monitor large industrial devices and processes.

Read more- Energy Transition In India

What is the significance of small-scale liquefied natural gas (SSLNG) unit?

1) Transition to green energy-The government aims to increase the share of natural gas in its primary energy mix to 15% by 2030 from 6% at present. This is because natural gas is far less polluting than conventional hydrocarbons like coal and oil. It is seen as a key transition fuel in India’s journey towards green energy and future fuels.

2) Decarbonization of transportation sector-It is cleaner fuel with reduced emission of carbon dioxide and negligible amounts of particulate matter, nitrogen oxide, and Sulphur dioxide as compared to diesel.

3) Overcome transportation challenge of Natural Gas-There are many places that are not connected by the country’s natural gas pipeline grid. This hinders the use of LNG directly as fuel for long-haul trucks and inter-city buses. This challenge can be overcome by small-scale liquefied natural gas unit.

4) Save forex reserve-It is usually cheaper than crude oil, from which diesel is derived. Thus, replacing a major chunk of India’s diesel consumption by LNG could lead to substantial foreign exchange savings.

What are the challenges in its wider adoption?

1) Paucity of LNG-powered vehicles-There is shortage of LNG-powered vehicles in India.

2) High cost-The LNG-powered vehicles have higher initial cost as compared to diesel run vehicles.

3) Financing ecosystem– India does not have a robust LNG vehicle financing ecosystem.

4) Retail network-India does not have LNG retail network.

What steps have been taken to overcome this challenge?

1) Companies such as GAIL and Petronet are working to build a viable ecosystem for transporters to move from diesel vehicles to LNG.

2) Petronet has collaborated with commercial vehicle manufacturers and other public sector oil & gas companies for trials and pilot projects for LNG-fuelled trucks and buses.

3) Petronet has established a few LNG dispensing stations along highways.Similarly,Indian Oil Corporation is also planning to build LNG dispensing stations along major highways.

Question for practice

What is SSLNG? Highlight its significance in ensuring smooth transition to green energy?