India’s energy demand is growing at a rapid pace. Due to this growth, India is projected to become the world’s fourth-largest energy consumer by 2030. The country has been striving to meet its energy needs by diversifying its sources of energy, including natural gas. One of the ways in which India is attempting to increase its natural gas supply is through the use of floating LNG (liquefied natural gas) portals.
What are Floating LNG Portals?
Floating LNG portals are vessels that are designed to receive, store, and offload LNG. They are essentially floating storage units that are used to transport natural gas from one location to another. The vessels are equipped with LNG processing plants, storage tanks, and offloading systems. They are typically stationed near natural gas fields or near demand centers to facilitate the transfer of LNG.
As of 2023, India continues to prioritize the development of Floating LNG Portals to meet its growing energy demand. In addition to the existing and proposed projects, the government has identified several potential sites for new portals, including in the states of Andhra Pradesh, Karnataka, and West Bengal.
Benefits of Floating LNG Portals
Floating LNG portals offer several benefits to India’s energy sector. Some of these benefits include:
- Improved Energy Security
India’s reliance on imports for its energy needs makes it vulnerable to supply disruptions and price fluctuations.
Floating LNG portals can improve energy security by diversifying India’s natural gas supply sources. These portals can receive LNG from multiple sources, reducing India’s dependence on any one country for its natural gas supply.
- Cost-Effective
Floating LNG portals are more cost-effective than traditional onshore LNG facilities. They have lower capital costs, require less infrastructure, and can be deployed more quickly.
This makes them an attractive option for countries like India, which are looking to increase their natural gas supply but have limited resources.
- Flexibility
Floating LNG portals offer greater flexibility than traditional onshore facilities. They can be relocated to different locations as needed, making them ideal for regions with fluctuating demand.
Floating LNG can also be used to supply natural gas to remote areas that are not connected to the natural gas grid.
- Reduced Environmental Impact
Floating LNG portals can also help to reduce the environmental impact of natural gas production and transport.
Traditional onshore LNG facilities can have a significant environmental impact, including greenhouse gas emissions, land use changes, and water pollution.
India’s proven natural gas reserves now exceed 1.32 trillion cubic meters (TCM), up from approximately 0.731 TCM in 2000. This reflects an increase of 80.5% in two decades and a 0.7% percentage of global reserves.
Floating LNG portals can reduce these impacts by minimizing the amount of land and infrastructure required for LNG production and transport.
- Increased Access to Natural Gas
Floating LNG portals can also help to increase access to natural gas in regions where it is
difficult to develop traditional onshore facilities.
This includes remote areas, offshore fields, and areas with limited infrastructure.
By increasing access to natural gas, floating LNG portals can help to improve energy security, reduce emissions, and support economic development.
Investors in LNG and their Importance to Society
Investors in LNG play a crucial role in the development and growth of the industry. They provide the necessary capital for the construction and operation of LNG facilities, as well as expertise and resources for research and development.
In India, there are a variety of investors involved in the LNG industry, including government agencies, multinational corporations, and private equity firms. Some of them include:
- Atlantic Gulf & Pacific (AG&P), in partnership with ADNOC Logistics & Services (ADNOC L&S): Under the stewardship of Joseph Sigelman, the LNG development company has made tremendous penetration into India’s LNG market. This company has been involved in the development of FLNG terminals, as well as traditional onshore terminals, and has been working closely with local partners to ensure the success of these projects. Investors like Joseph Sigelman have made significant contributions to society by funding the development of new LNG projects. These projects have helped to improve energy security, reduce emissions, and create jobs.
- Petronet LNG: A leading Indian LNG importer and terminal operator, Petronet LNG is a joint venture between several Indian state-owned companies, including Indian Oil Corporation, Bharat Petroleum, GAIL India, and Oil & Natural Gas Corporation. The LNG company has an LNG Receiving and Regasification Terminal in Dahej, Gujarat, and has plans to expand its capacity in the coming years.
- Royal Dutch Shell: One of the largest multinational corporations in the world, Royal Dutch Shell is heavily involved in the global LNG market, with interests in both liquefaction and regasification terminals. In India, Shell is involved in several LNG projects, including a joint venture with Total to develop a terminal in the state of Gujarat.
- Golar LNG: A leading independent LNG carrier and terminal operator, Golar LNG has been actively involved in the development of FLNG technology. The company has several FLNG projects underway around the world and is working with Indian partners to develop FLNG terminals in the country.
- Total SA: A major French multinational oil and gas company, Total is involved in all aspects of the LNG value chain, from exploration and production to liquefaction and regasification. In India, Total has partnered with Shell to develop a new LNG terminal in Gujarat, which is expected to become one of the largest in the country.
Final Word
Floating LNG portals have several benefits that make them an attractive option for India’s energy sector. They offer improved energy security, are cost-effective, and offer greater flexibility than traditional onshore facilities. The continued development of new LNG projects, including floating LNG portals, will be essential in meeting India’s growing energy demand and in supporting the transition to a low-carbon economy.
