The ministry of shipping is planning a liquefied natural gas (LNG) bunkering facility at Dharamtar Creek near Mumbai, similar to the one being set up within the premises of Haldia Dock Complex on the eastern coast.

“If a vessel sails between Mumbai-Goa and uses LNG as a fuel, the fuel cost saving will be up to 75%,” said shipping minister Nitin Gadkari.

LNG Bunkering involves transfer of LNG fuel from a distribution source to an LNG-fuelled ship.

Atul Patne, chief executive officer of Maharashtra Maritime Board (MMB) told DNA Money, “Discussions are going on with two oil marketing companies (OMCs) – Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum Corporation Ltd (BPCL). Soon, one of the two OMCs will be provided with land on lease to have an LNG bunker.”

The project is likely to be a joint venture between one of these OMCs and a private player.

MMB has two parcels of land at Dharamtar, one being 2 acre and the other 4 acre. Either of the plots will be utilised for dispensing LNG.

During the initial phase, two locations were zeroed in for setting up of LNG bunker – Mandwa and Dharamtar. But now Dharamtar is being preferred due to the availability of land as well as usage.

Apart from the likelihood of passenger boats utilising LNG, vessels within Dharamtar Port and cargo vessels can also go for refuelling. If any foreign flagged vessel with dual-fuel option sails to Mumbai Port (MbPT) or Jawaharlal Nehru Port, they can also avail the facility.

Additionally, MMB along with other players such as MbPT and City and Industrial Development Corporation of Maharashtra Ltd has plans to operate Roll On-Roll Off (Ro-Ro) and Roll On-Roll Off Passenger (Ro-Pax) services connecting Ferry Wharf (Mumbai)-Nerul (Navi Mumbai) and Mandwa. These vessels may also opt for dual fuel.

As the expertise on retrofitting of vessels is unavailable in India, some international firms will be empanelled and allowed to have their retrofitting facility next to the LNG bunkers at Dharamtar Creek.

The ministry is also contemplating to provide tax sops to promote usage of LNG as alternate fuel. “For a smaller vessel, it takes around Rs 2 lakh to install LNG kit, which is something similar to having CNG kit in our cars. The cost isn’t much, but the overall benefit or cost saving is a lot more,” added Patne.

Apart from higher fuel efficiency, the pollution levels too would decrease. This will also help in achieving the commitments made by India at COP21 to work towards reducing pollution and global warming.

Meanwhile, the Kolkata Port Trust has set aside about 10 acre of land at the Haldia Dock Complex for having LNG bunker. This move is to provide LNG to barges sailing on National Waterway 1 or Varanasi-Haldia.

The Inland Waterways Authority of India and Petronet LNG have been asked to plan and coordinate so that LNG barges could commence navigation on NW1 by December 2018.

Petronet LNG’s ownership comprises four of the top public sector companies, namely, Oil and Natural Gas Corporation (ONGC), IOCL, BPCL and GAIL which jointly own 50% of the equity.

Source: DNAIndia