Small-scale liquefied natural gas (SSLNG)

Small-scale liquefied natural gas (SSLNG)

News: Recently, Union minister of Oil and Natural Gas, has recently dedicated to the nation India’s first small-scale liquefied natural gas (SSLNG) unit at GAIL (India) Ltd’s Vijaipur complex in Madhya Pradesh.

What is SSLNG?
 Small-Scale Liquefied Natural Gas (SSLNG) refers to the production, transportation, and use of liquefied natural gas (LNG) on a smaller scale compared to conventional 
large operations.

What is LNG?
 LNG is natural gas that has been cooled to a liquid state for storage and shipping.
 It is odorless, colorless, non-toxic, and non-corrosive.
 Composed almost entirely of methane, it has less carbon content than other fossil fuels.
 LNG typically contains 85–95% methane and emits 40% less carbon dioxide than coal and 30% less than oil. It also produces no soot, dust, or particulates.

What is the significance of SSLNG unit?
 Transition to green energy: The government aims to increase the share of natural gas in its primary energy mix to 15% by 2030 from 6% at present. This is because natural gas is far less polluting than conventional hydrocarbons like coal and oil. It is seen as a key transition fuel in India’s journey towards green energy and future fuels.
 De-carbonization of transportation sector: It is cleaner fuel with reduced emission of carbon dioxide and negligible amounts of particulate matter, nitrogen oxide, and Sulphur dioxide as compared to diesel.
 Save forex reserve: It is usually cheaper than crude oil, from which diesel is derived. Thus, replacing a major chunk of India’s diesel consumption by LNG could lead to substantial foreign exchange savings.
 Local Accessibility: SSLNG units allow for the production and distribution of LNG on a smaller scale, making it accessible to regions that may not have large-scale infrastructure.
 Diversification of Energy Sources: SSLNG promotes the use of natural gas as an alternative to other fossil fuels like coal and oil. By diversifying energy sources, countries can reduce their dependence on a single fuel type and enhance energy security.
 Economic Benefits: SSLNG units create local jobs during construction, operation, and maintenance. They support economic growth by enabling small and medium-sized enterprises to participate in the LNG value chain.

What are the challenges in its wider adoption?
 Paucity of LNG-powered vehicles: There is shortage of LNG-powered vehicles in India.
 High cost: The LNG-powered vehicles have higher initial cost as compared to diesel run vehicles.
 Financing ecosystem: India does not have a robust LNG vehicle financing ecosystem.
 Retail network: India does not have LNG retail network.