The center is considering floating LNG storage facilities in major ports

The center is considering a proposal to set up liquefied natural gas (LNG) delivery stations for trucks in ports using floating storage units (FSU) as an interim measure. These proposals will guide the development of LNG storage facilities in nine major ports under the administrative control of the Ministry of Shipping. Four major ports, Deendayal Port (Kandla), Chennai, Cochin Port and Kamarajar Port (Ennore), already have LNG terminals in their vicinity. An FSU is an old ship anchored near the port with natural gas storage capacity.

Large ports are under the administrative control of the Ministry of Shipping, while the remaining ports (so-called non-large ports) are under the state governments and their maritime authorities.

According to the present plan, the floating storage unit (FSU) allows the flexibility to use the same vessel as an LNG carrier for the initial phase when gas supplies are low. “Capital investment is small and that saves on LNG charter costs in the early lean years,” said a senior government official.

As natural gas consumption increases in these ports and more LNG trucks are deployed, converting to a land terminal is easy by installing a tank and additional regasification capacity. This approach has also been adopted in other countries such as Nicaragua, the Philippines, Ghana and Ecuador, the official added.

These plans are in line with India’s goals to decarbonize its ports under the Harit Sagar Green Port Guidelines 2023. The aim of the guidelines is to minimize waste through reduction, reuse, reuse and recycling to achieve zero waste discharge from port operations and to promote monitoring on environmental performance indicators.

They also cover aspects of the National Green Hydrogen Mission affecting ports, green hydrogen facility development, LNG bunkering and offshore wind energy, among others. The Green Port policy also paves the way for incentives for fleet owners to adopt compressed natural gas, LNG, electric or green hydrogen trucks. The move aims to reduce the intensity of emissions in major ports.

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