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The Silicon Review Asia

GAIL Establishes a Satellite LNG station in Orissa

GAIL Establishes a Satellite LNG station in Orissa

The state-owned natural gas transmissions company, GAIL has established a new LNG terminal in Orissa. The move by the company will provide gas supply to the local customers in Bhubaneswar without a gas pipeline.

The new innovation model may be used in other cities as well, where gas distributors are ready to provide new license areas which lack gas pipelines.

The company’s terminal has 2 vertical tanks (capacity of 20kilos each), and two vaporizers for supplying the gas.  The low-pressurevaporizer is meant for supplying gas to homes and high-pressurevaporizer for CNG vehicles. The tanks need to be refilled in every 3 to 4 days by LNG brought by road from Gujarat.

According to reports, the new development is a short agreement until the Ganga gas pipeline reaches Bhubaneswar. The deployment of LNG stations is better than gas cascades as the latter involves a higher transportation cost.

Finding gas through satellites LNG station involves less expenditure than using cascades but Pipeline gas is much cheaper than both.  This model can be useful to gas distributors who intend to start operations and attract consumers before the main gas pipeline has reached their license areas.

The transportation of gas to the people can consume more time than distributing the licenses. The company which already has a license to supply gas to Bhubaneswar planned not to wait for the gas pipeline, which will connect the city in 2020.

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