India’s top gas firm GAIL has done the world’s first ship-to-ship liquefied natural gas (LNG) transfer to save on shipping costs and cut emissions as the state-owned entity looks at innovative ways as a pivot to boost business, according to a PTI report citing company officials.
5.8 million tonnes of LNG—natural gas that has been supercooled to liquid—are purchased by GAIL from the US annually. This volume is transported to India by the company using LNG tankers. LNG is normally transported by ship from Sabine Pass in the United States to India via Gibraltar and the Suez Canal, covering a distance of roughly 19,554 nautical miles round trip. About 15,600 tonnes of CO2 are released throughout this trip, which takes about 54 days.
Castillo De Santisteban, a ship rented by the firm, recently transported a shipload of LNG from the US. However, halfway through, officials stated that it moved the cargo to another chartered hired ship, the Al Gharrafa of QatarGas. They also mentioned that this unique ship-to-ship (STS) transfer was the first of its kind worldwide.
QatarGas vessel proceeded to Dahej in Gujarat to discharge the cargo originally planned to be discharged by GAIL’s vessel. Its vessel returned from Gibraltar to the next loading port. This has resulted in savings of about 8,736 nautical miles, equivalent to 7,000 tonnes of CO2 emission. Also, this has resulted in shortening the voyage of the vessel from 54 days to approximately 27 days for GAIL’s chartered vessel, officials said as per the report.
During its return trip, the QatarGas ship made some cash in addition to saving money on fuel and canal fees. As a result, GAIL and QatarGas benefited from this optimization scheme.
“The proof of concept has been demonstrated by GAIL and has the potential to be scaled up. The concept has a learning for the entire LNG shipping industry wherein through unique contractual arrangements, owners and charterers can significantly reduce the shipping distance and leading to substantial savings in carbon emissions,” an official said.
