GAIL does world’s first ship-to-ship LNG transfer

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, company officials said.

GAIL has contracted 5.8 million tonnes per annum of LNG (natural gas super-cooled to liquid form) from the US. The company brings this volume to India via LNG ships. The ship typically travels a distance of about 19,554 nautical miles for a round trip to transport LNG from Sabine Pass in the US to India via the Suez Canal and Gibraltar. This journey takes approximately 54 days and emits about 15,600 tonnes of CO2.

Emissions are generally controlled using the latest technology or changing the destination of the cargo. However, GAIL’s innovative contractual arrangement that results in vessels following an optimised path has resulted in a significant reduction in CO2 emission.

Recently, the company-hired vessel Castillo De Santisteban moved a shipload of LNG from the US. But mid-way, it transferred the cargo to another chartered hired vessel Al Gharrafa of QatarGas, officials said, adding the innovative ship-to-ship (STS) transfer was the first in the world.

QatarGas vessel proceeded to Dahej in Gujarat to discharge the cargo originally planned to be discharged by the 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.

The QatarGas vessel on its backhaul saved on fuel costs, and canal charges, and also gained some revenue. Hence, this optimisation plan was a win-win situation for GAIL and QatarGas.