India Working to Replace Diesel with LNG Bunkers for Inland Navigation

India's government has given approval to a plan that will see vessels operating in the country's inland waterways switch from diesel to LNG.

With the aim of reducing carbon emissions without additional operating costs, India's government has given approval to a plan that will see vessels operating in the country's inland waterways switch from diesel to liquified natural gas (LNG) bunkers, Indian media reports.

"We will use LNG as a fuel for the next generation of vessels in the inland waterways. We want clean and affordable fuel for both protecting environment and bringing down the cost of transportation," said Nitin Gadkariv, Minister of Shipping.

It is reported that the Allahabad-Haldia stretch of Ganga-Bhagirathi-Hoogly river system will likely be the first to see the fuel switch implementation, with a new fleet of 80 vessels.

The switchover strategy is said to include plans for three LNG distribution hubs at Varanasi, Sahebganj, and Haldia, that will provide LNG to not only the marine sector, but also railways, trucking, and mining industries.

"Unlike crude oil, LNG spills do not require any remediation of soil, ground water or surface water because it evaporates immediately and dissipates quickly into the atmosphere," said an official of the Inland Waterways Authority of India.

In order to enable further investment and switchover in other waterways, the Indian government is reported to have passed a bill to increase the number of designated national waterways from five to 111.

"Quite a few of these may, however, not be viable because of inadequate water-flow round the year. But once the bill becomes an Act, we can undertake feasibility studies to assess the possibilities," said an official from the Ministry of Shipping.

It is reported that India's LNG requirement is estimated to increase by as much as 4 percent annually, with state-owned Gas Authority of India Ltd (GAIL) said to already be contracting the import of large quantities of LNG from the U.S. over the next 20 years.

In May, it was reported that A.K.Balyan, Managing Director and CEO, Petronet LNG Ltd (Petronet LNG) said that Kochi could become an LNG bunkering hub for Southeast Asia.