Indian Gasoline Change (IGX) stated on Wednesday that it has launched contracts of small-scale liquefied pure fuel (ssLNG) on its platform after it acquired approval from the Petroleum and Pure Gasoline Regulatory Board (PNGRB).
This transfer marks a major step in the direction of addressing the demand of pure fuel in areas that aren’t linked to the nationwide fuel grid, the platform stated.
In December final 12 months, IGX stated that it sought approval from the PNGRB for launching ssLNG buying and selling on the trade, which permits buying and selling of LNG from RLNG terminals and distributed fields in ssLNG containers.
ssLNG contracts
The introduction of ssLNG contracts on IGX goals to deal with the rising fuel demand from industries and CGD (Metropolis Gasoline Distribution) firms that do not need entry to pipeline networks, IGX added.
By way of ssLNG, they’ll now procure liquefied fuel by LNG tankers at aggressive charges underneath each day, fortnightly and month-to-month contracts. Initially, this contract is launched at Dahej and Hazira LNG terminals. Later, it will likely be launched at different terminals specifically Dhamra, Mundra, Ennore, Kochi, and on-land ssLNG stations at Vijaipur.
IGX MD & CEO Rajesh Ok Mediratta stated, “With demand for road-transported LNG projected to extend considerably over the approaching years, our initiative will present CGD networks, industries and LNG dispensers a aggressive fuel pricing that can optimise their prices. By facilitating the buying and selling of ssLNG contracts, we aren’t solely enabling environment friendly transportation of bigger volumes of pure fuel by way of vehicles but additionally widening entry to a cleaner gas throughout the nation.”
LNG transportation
Pure fuel is primarily provided by pipelines, consequently, industries and industrial institutions with out entry to the grid primarily depend on vehicles for LNG transportation.
The demand for road-transported LNG is projected to extend to five million customary cubic meters per day (MSCMD) over the following 5 years. ssLNG contracts current a win-win state of affairs for each the consumers in addition to sellers. It will function a platform for sellers, who can come and commerce LNG.
Transporting pure fuel in liquefied kind by way of vehicles will enable bigger volumes to be transported, doubtlessly making it economically viable for consumers not linked to pipelines. Additional, it is going to additionally guarantee a clear and truthful procurement course of with enhanced fee safety.