USTDA to Help Develop Gas Distribution in India
The US Trade and Development Agency (USTDA) April 16 said it has awarded a grant to Gujarat-based Arush Gas Technology Services to help accelerate India’s use of natural gas and improve energy access to support economic growth.
Under the grant, USTDA will fund a feasibility study to evaluate the development of a ‘virtual pipeline’ that will distribute natural gas via truck, rail or ship to areas unserved by traditional gas pipeline infrastructure. AGTS, which provides services for the natural gas-related businesses, has selected Houston-based Galway Group to conduct the study.
“USTDA’s creative support of this project will make a critical difference in achieving a cleaner and more resilient energy supply system in India, while creating significant opportunities for US industry and American workers,” said the acting head, Thomas Hardy.
USTAD believes that the new implementation of a flexible ‘virtual pipeline’ network will serve as an interim transportation solution while India’s physical gas pipeline infrastructure is developed, as well as a long-term option in areas where physical pipelines are not viable.
“The natural gas virtual pipeline project transferring LNG across the country is a long-term parallel solution for natural gas in India; pipeline gas can cover only a segment of the energy landscape, even if the physical pipeline doubles up in fifteen years,” said Arush Gas president, Shreyas Sheth.
USTAD said the study supports its US Gas Infrastructure Exports Initiative and the Administration's Asia Enhancing Development and Growth through Energy (Asia EDGE) initiative goals to strengthen energy security and expand energy access in partner countries.
“Based on Galway Group’s experience in the small-scale LNG and virtual pipelines segment, we are pleased to be given the opportunity to participate and contribute to India’s clean energy strategy and virtual pipelines developmental framework, through this USTDA initiative,” said Galway Group CEO Hal Miller.
With demand for gas rising in India, a lot of companies are looking to distribute LNG by road, railways or waterways; a concept otherwise known as ‘virtual pipeline’. Recently, global majors have shown interest in getting a bigger footprint in this business.
In March, Indian cryogenic liquid storage, distribution, and regasification solutions provider Inox India signed a memorandum of understanding (MoU) with Anglo-Dutch major Shell to develop a market for LNG supply by road from the Shell-operated Hazira terminal in Gujarat. The companies plan to deploy infrastructure including logistics and receiving facilities at customer end and offer LNG access to the customers not connected to the pipelines.
In February, New York-listed Chart Industries signed a letter of co-operation with ExxonMobil India LNG, an affiliate of ExxonMobil, and state-run Indian Oil Corp, to develop virtual pipelines to expand gas access in India.
