India considers floating storage units for LNG Dispensing Stations at Major Ports to decarbonize and reduce emissions

The centre is considering proposal to set Liquefied natural gas (LNG) dispensing stations for trucks by using floating storage units (FSU) as an interim measure, at nine major ports.

India’s four major ports, Deendayal Port (Kandla), Chennai, Cochin Port, and Kamarajar Port (Ennore), already have LNG terminals in their vicinity.

A FSU is an old ship anchored near the port with natural gas storage capacity.

According to the plan under consideration, the floating storage unit (FSU) allows flexibility of using the same ship as an LNG carrier for the initial period when gas send outs are low. “Capital investment is low and this saves LNG chartering cost for initial few lean years,” a senior government official said.

He added, once natural gas consumption rises at these ports, with more LNG trucks being deployed, conversion to a land based terminal is easy by installing a tank and additional regasification capacity. This approach has been adopted in other countries such as Nicaragua, Philippines, Ghana, and Ecuador, as well.

This is in line with India’s target to decarbonize ports as per the Harit Sagar Green Port Guidelines 2023. The process aims to reduce waste by reducing, reusing, recycling and recycling to ensure zero waste disposal at the port and facilitate maintenance. Environmental Performance Indicators.

They also address some aspects of the country’s green hydrogen mandate regarding ports, green hydrogen plants, LNG refueling and offshore wind. Green port policies also pave the way to encourage shipowners to adopt vehicles powered by compressed natural gas, liquefied natural gas, electric or green hydrogen. The move aims to reduce emissions used in major ports.

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