India Moves Ahead with Plans to Build LNG Barges on River Ganges

India’s shipping ministry on Monday said it has reviewed the follow up action on a memorandum of understanding (MOU) between Inland Waterways Authority of India (IWAI) and Petronet LNG for providing an LNG based mode of transport on national waterways.

IWAI and Petronet LNG have been asked to plan and coordinate their work plans in a manner such that LNG barges could commence navigation on National Waterway 1 by December 2018.

The two parties signed the MoU at the Maritime India Summit in Mumbai in April, 2016 with the objective of promoting the usage of LNG barges on National Waterway-1 (Ganga).

Both the options of switching over from the existing diesel to LNG barges and introduction of new LNG barges are being considered. Although the switching over from traditional fuel (diesel) to LNG will entail an initial capital expenditure, the investment is likely to be recovered in four to five years at current prices, the ministry said.

Petronet LNG Limited will design, construct and operate LNG unloading, storage, bunkering and reloading facilities on the National Waterways (NWs). Action has already been initiated for preparing detailed feasibility report and it is expected to be completed by December 2016. Petronet LNG Ltd plans to set up a base depot at Haldia and fuelling stations at Sahibganj (Jharkhand), Patna (Bihar) and Ghazipur (UP).

IWAI will facilitate the switchover of bunker fuel from diesel to LNG by persuading the barge owners and the operators about the benefits of LNG. IWAI will also provide land, wherever possible, for the setting up of LNG storage and will develop jetties to facilitate bunkering.

The ministry believes that there is a potential for 17.5 MT of cargo on NW-1 by 2020.