Small-scale LNG for expanding natural gas access in India

This issue brief discusses the potential for the growth of Small-Scale Liquefied Natural Gas (ssLNG) in India as the country moves towards increasing the share of natural gas in its energy mix to 15 per cent within a decade. Small-scale LNG can provide natural gas access to consumers without pipeline connections, or to those who operate outside areas of proposed city gas distribution network coverage. This study calculates the delivered price of ssLNG and finds that the fuel could be primarily price-competitive with diesel and liquefied petroleum gas (LPG) used in industry, but could also compete with certain grades of furnace oil, pet coke and piped natural gas in certain locations. It makes a series of recommendations to aid the growth of ssLNG, whose limited market penetration in India is exacerbated by a lack of awareness amongst end users of the ssLNG option, limited ssLNG infrastructure growth, and policy support.