India Step Closer to Using LNG to Fuel Barges

The Haldia Dock Complex, under India’s Kolkata Port Trust, revealed plans to set up LNG storage facilities near the Haldia Oil Jetty No. 1 as it designated some 10 acres of land for a period of 30 years for the project in light of the country’s efforts to introduce the use of LNG as fuel for barges.

Namely, the move comes on the back of the Ministry of Shipping’s intent to reduce logistics cost and achieve the COP21 targets on cutting down pollution. Use of LNG as fuel for barges is expected to save around 20 percent on fuel, according to the ministry. Carbon Dioxide emissions are likely to get reduced by 20-25 percent and nitrogen/sulphur oxide emissions by 90 per cent.

The efforts to introduce LNG as barge fuel is part of the overall efforts to promote transport on inland waterways and coastal shipping.

The LNG storage project, which would also include laying pipelines and installing unloading arms through tender cum auction, will be undertaken on land lease model by granting lease of land by middle of December, 2016.

LNG facilities are expected to be developed within 24 months from date of allotment of land.