New Delhi: Soon after receiving approval from the Petroleum and Natural Gas Regulatory Board (PNGRB), the Indian Gas Exchange (IGX) has launched contracts for small-scale liquefied natural gas (SSLNG) on its platform. Demand for fuel in areas not connected to the national gas grid.
“The launch of SSLNG contracts on IGX aims to address the growing GA demand from industries and CGD (city gas distribution) companies that do not have access to the pipeline network,” IGX said in a statement.
Through SSLNG, they can now purchase liquefied gas through LNG tankers at competitive rates under daily, fortnightly and monthly contracts. Initially this contract has been launched at Dahej and Hazira LNG terminals in Gujarat.Later, it will be launched at other terminals such as on-land SSLNG stations at Dhamra in Odisha, Mundra in Gujarat, Ennore in Tamil Nadu, Kochi in Kerala and Vijaypur.
Natural gas in the country is mainly supplied through pipelines. As a result, industries and commercial establishments without access to grid primerails rely on trucks to transport LNG.
Road-transported LNG demand is projected to grow to 5 million standard cubic meters per day over the next five years.
Small-scale LNG contracts offer a win-win situation for both buyers and sellers.It will serve as a platform for sellers who can trade LNG. Transporting natural gas in liquefied form via trucks would allow larger volumes to be transported, potentially making it economically viable for buyers not connected to pipelines. Furthermore, it will also ensure a transparent and fair procurement process with enhanced payment security.
Speaking on the occasion, PNGRB Member Anjani Kumar Tiwari said, “Small-scale LNG serves as the cornerstone for our gas-based economy, enabling us to expand our reach beyond conventional pipelines On the supply side, it can bring gas from remote and difficult areas and on the demand side, it can help to source gas to the industry which is not connected to the gas grid.,
“With this vision in mind, we granted approval to IGX to launch SSLNG contracts on their platform. PNGRB strives to be a facilitator to support the development of SSLNG in India by providing a comprehensive regulatory framework. We currently We will continuously evaluate the rules and make amendments to help the industry address the challenges,” he said.
Speaking on the occasion, former PNGRB Chairman DK Saraf said that pipelines are the best means to transport gas, but the geographical expanse of the country creates challenges in reaching every corner. Small-scale LNG emerges as a solution that bridges this gap and enables customers to take advantage of natural gas and facilitate the transition towards cleaner energy sources.Rajesh K Mediratta, MD and CEO, Indian Gas Exchange, said, “We envision IG to provide a market with competition, flexibility and transparent price discovery. The launch of SSLNG contracts aims to fill the void in the SSLN sector. Road -With the demand for transportation LNG projected to grow significantly in the coming years, our initiative will provide city gas distribution networks, industries and LNG dispensers a competitive gas price that will optimize their costs by facilitating the trading of SSLNG contracts , we are not only enabling efficient transportation of large quantities of natural gas through trucks, but also expanding access to clean fuel across the country."
“The launch of SSLNG contracts on IGX aims to address the growing GA demand from industries and CGD (city gas distribution) companies that do not have access to the pipeline network,” IGX said in a statement.
Through SSLNG, they can now purchase liquefied gas through LNG tankers at competitive rates under daily, fortnightly and monthly contracts. Initially this contract has been launched at Dahej and Hazira LNG terminals in Gujarat.Later, it will be launched at other terminals such as on-land SSLNG stations at Dhamra in Odisha, Mundra in Gujarat, Ennore in Tamil Nadu, Kochi in Kerala and Vijaypur.
Natural gas in the country is mainly supplied through pipelines. As a result, industries and commercial establishments without access to grid primerails rely on trucks to transport LNG.
Road-transported LNG demand is projected to grow to 5 million standard cubic meters per day over the next five years.
Small-scale LNG contracts offer a win-win situation for both buyers and sellers.It will serve as a platform for sellers who can trade LNG. Transporting natural gas in liquefied form via trucks would allow larger volumes to be transported, potentially making it economically viable for buyers not connected to pipelines. Furthermore, it will also ensure a transparent and fair procurement process with enhanced payment security.
Speaking on the occasion, PNGRB Member Anjani Kumar Tiwari said, “Small-scale LNG serves as the cornerstone for our gas-based economy, enabling us to expand our reach beyond conventional pipelines On the supply side, it can bring gas from remote and difficult areas and on the demand side, it can help to source gas to the industry which is not connected to the gas grid.,
“With this vision in mind, we granted approval to IGX to launch SSLNG contracts on their platform. PNGRB strives to be a facilitator to support the development of SSLNG in India by providing a comprehensive regulatory framework. We currently We will continuously evaluate the rules and make amendments to help the industry address the challenges,” he said.
Speaking on the occasion, former PNGRB Chairman DK Saraf said that pipelines are the best means to transport gas, but the geographical expanse of the country creates challenges in reaching every corner. Small-scale LNG emerges as a solution that bridges this gap and enables customers to take advantage of natural gas and facilitate the transition towards cleaner energy sources.Rajesh K Mediratta, MD and CEO, Indian Gas Exchange, said, “We envision IG to provide a market with competition, flexibility and transparent price discovery. The launch of SSLNG contracts aims to fill the void in the SSLN sector. Road -With the demand for transportation LNG projected to grow significantly in the coming years, our initiative will provide city gas distribution networks, industries and LNG dispensers a competitive gas price that will optimize their costs by facilitating the trading of SSLNG contracts , we are not only enabling efficient transportation of large quantities of natural gas through trucks, but also expanding access to clean fuel across the country."
