BPCL Pioneers LNG bunkering in India
04 Mar 2015 | BPCL Update
BPCL initiatives to bring the bunkering of LNG to Indian shores have once again created history at Kochi. A new vessel MV KVITBJORN which had called on the Kochi Port on her maiden voyage to Europe for taking bunker fuel has been successfully fuelled by BPCL using the LNG loading facilities of Petronet LNG Limited at Puthuvype, Kochi. The vessel owned by the NOR LINES based at Norway has taken approx. 130 MT of LNG.
Being the first LNG bunkering activity in the country, this was a challenging task which could be accomplished with the support and guidance of agencies such as DG Shipping, Mercantile Marine Department, Kochi Port Trust, Customs, PLL and above all by quick decisions and timely assistance from Gas SBU HQ.
LNG as a propulsion fuel for shipping is gaining advantage as air emission requirements have become more stringent for sea going vessels. It is estimated that by 2020, there will be 1000 LNG fuelled vessels calling at various ports across the globe. A study done on the potential of LNG as bunkering fuel shows that by 2020, the demand for LNG would well be to the tune of 4-7 MMT per annum.
While some Ports in European countries are seeking to promote the use of LNG as a marine fuel and is pressing ahead with preparations to receive LNG fuelled ships, the infrastructure to provide LNG as bunker fuel is still in the nascent stages of development in the terminal facilities in Asia.
Report in The Hindu on 1 March 2015:
Kochi terminal is the only one in India having the facility. The LNG terminal of Petronet LNG Limited, located at Puthuvype here, is set to gain additional revenue by means of bunkering. The terminal has successfully provided LNG to a marine vessel which berthed at the terminal a few days ago.
The procedure could be replicated, effectively adding to the capacity utilization of the terminal.
The LNG terminal is utilizing less than 10 per cent of its capacity of 5 mmtpa (million metric tones per annum) now. Modifications had been incorporated at the terminal to supply LNG to marine vessels, a top official of Petronet LNG Limited told The Hindu on Friday. The bunkering operation is the first of its kind in the country and the Asian region, according to him. It could be a potential revenue-earning mode for the terminal and the government by way of VAT, he said.
The use of LNG would result in lower emissions as natural gas is considered the cleanest fuel available “
As per reliable information, there are 50 more such ships under construction at various ship yards in China and all these ships are meant for delivery to it’s owners in Europe. Almost all of these ships are likely to call up on Kochi Port, as facilities to supply LNG as bunker fuel is still not operational at other ports. This offers a big opportunity not only to BPCL, but to PLL which is operating their Kochi Terminal much below its installed capacity and also to Kochi Port which is looking at all avenues to earn additional revenues.