GAIL to enter distributed LNG production business to provide fuel to users

GAIL (India) Ltd, the nation's largest gas transportation and marketing firm, on Wednesday said it plans to enter into distributed Liquefied Natural Gas (LNG) production to take the fuel to users.

GAIL will liquefy or turn natural gas into liquid at sub-zero temperature and transport it in trucks to users.

"In a first-of-its-kind endeavour in the country, GAIL plans to enter into distributed LNG production with the vision to cater to the demand from off-grid locations and the transport sector," it said in a statement.

GAIL has placed an 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.

"These plants will help in the distribution of natural gas through liquefaction in new cities areas, liquefaction of gas at isolated fields and will support setting up of LNG fueling stations and bunkering. It will be the first of its kind in the country to introduce portable and scalable liquefaction units," it said.

The project is envisaged to provide a thrust to the Government of India's focused initiatives to increase the share of natural gas in the primary energy basket.

Further, the firm is also under discussion for manufacturing liquefaction skids in India.