In A First, GAIL To Enter Distributed LNG Production Business To Meet Demand From Off-Grid Locations, Transport Sector


In a first-of-its kind endeavour in the country, state-owned GAIL on Wednesday (23 June) announced the plans to enter into distributed Liquefied Natural Gas (LNG) production in a bid to cater to the demand from off-grid locations and transport sector, the company said in a release.

The company said that it has placed order for two small-scale liquefaction skids capable of producing LNG on a pilot basis.

Liquefaction will be achieved through proprietary technology-based mobile liquefaction skids, it added.

“These plants will help in distribution of natural gas through liquefaction in new CGD (City Gas Distribution) areas, liquefaction of gas at isolated fields and will support setting-up of LNG fuelling stations and in bunkering,” the company said.

It will be first of its kind in the country to introduce portable and scalable liquefaction units, the state-owned natural gas producer said.

“The project is envisaged to provide a thrust to Government of India’s focused initiatives to increase the share of Natural Gas in the primary energy basket,” the company said.

Further, GAIL is also under discussions for manufacturing liquefaction skids in India, it said.