Distributed LNG: GAIL has initiated talks with CGD companies

Seeking buyers for its distributed LNG business, GAIL has initiated discussions with CGD companies who have evinced interest in the offtake of LNG

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GAIL in talks with CGD companies for distributed LNG offtake
  • The minister told the House that GAIL has placed order for two small-scale liquefaction skids capable of producing LNG on a pilot basis
  • The location of the project has not yet been finalised

New Delhi: State-run GAIL (India) Limited has initiated preliminary discussions with city gas distribution (CGD) companies with awarded Geographical Areas (GAs) who have evinced interest in the offtake of LNG produced from liquefaction skids, said Minister of State (MoS) for Petroleum and Natural Gas Rameswar Teli in the Lok Sabha on Thursday detailing the PSU’s distributed LNG business plan. In a written response to a question raised in the Lok Sabha, the minister said that the location of the project has not yet been finalised.

Distributed LNG: GAIL has ordered 2 liquefaction skids

The minister told the House that GAIL has placed order for two small-scale liquefaction skids capable of producing LNG on a pilot basis to enter into distributed Liquefied Natural Gas (LNG) business with the vision to cater to the demand from off-grid locations and transport sector. The state-run gas utility had announced its plans to enter the distributed LNG business a month ago.

A statement released by GAIL had said, “Liquefaction will be achieved through proprietary technology-based mobile liquefaction skids. These plants withe ll help in distribution of natural gas through liquefaction in new CGD areas, liquefaction of gas at isolated fields and will support setting-up of LNG fueling stations and in bunkering. It will be first of its kind in the country to introduce portable and scalable liquefaction units.”

“The project is envisaged to provide a thrust to the government’s focused initiatives to increase the share of Natural Gas in the primary energy basket. Further, GAIL is also under discussion for manufacturing liquefaction skids in India,” it had added.

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