Chennai: Small-scale liquefied natural gas (ssLNG) could be delivered at prices competitive with diesel and liquefied petroleum gas (LPG) used in industry, according to an independent study released by the Council on Energy, Environment and Water (CEEW).
Considering a one-way distance of 200 km and the average 2017-18 LNG import price, the study estimates the delivered price of natural gas to be USD 11.11 (Rs 815) per million British thermal units (mmBtu), as compared to the average industrial prices of USD 24.04 (Rs 1,764)/mmBtu for diesel and USD 16.62 (Rs 1,219)/mmBtu for LPG.
Small-scale LNG offers an opportunity to replace as many as 41 million metric standard cubic metres (mmscmd) of LPG and 144 mmscmd of diesel in industrial facilities in States within 600 km of an LNG terminal.
Small-scale LNG systems transport liquefied natural gas from LNG import terminals in containers and re-gasify the fuel at consumer sites, instead of relying on transmission pipelines. In locations currently served by city gas distributors, who enjoy infrastructure exclusivity and charge high prices, ssLNG can offer a cheaper alternative.
At the same time, they can enable new CGD networks in locations without existing gas transmission pipelines. In fact, ssLNG can accelerate the government’s mission to connect 100 new cities to natural gas, it said.