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GAIL to source gas through Coselle technology
Monday, 14 October 2002, 19:30 IST
NEW DELHI: The state-owned Gas Authority of India Ltd. (GAIL) is exploring Coselle, a new Canadian compressed natural gas (CNG) technology, to source gas from Iran.
This technology is an alternative to other more expensive modes like pipeline and liquefied natural gas (LNG), GAIL officials said here.
GAIL estimates that the cost of CNG through this route would be $2.5 to $3 per Million Metric British Thermal Units (MMBTU) as against the expected LNG delivered price of $3.6-5 MMBTU at various points in India.
The Indian gas major has entered into a memorandum of understanding with the National Iranian Oil Company (NIOC) to explore the Coselle Technology developed by Canada's Cran & Stenning Technology Inc.
"Coselle is an emerging technology that permits transportation of gas in compressed form, in coils, on board ships," GAIL chairman and managing director Proshanto Banerjee told IANS.
"While it may not be a ready option to LNG, Coselle replaces the need for liquefaction of gas at the dispatch points and re-gassification at the receiving points, thereby cutting down the cost."
GAIL and NIOC have teamed up to study this option and plan to start working in a couple of months, Banerjee said.
According to GAIL officials, energy majors like Shell are also contemplating this cost-effective option.
GAIL is also exploring tie-up possibilities with Coselle technology developers U.S.-based Williams Energy and other multinational energy majors for development of the CNG carriers.
The Coselle high-pressure gas storage system uses very large coil of small diameter pipe sitting in a steel girder carousel -- "Coselle" (coil in a carousel).
A standard Coselle CNG carrier resembles a 60,000-deadweight tons type bulk carrier with 108 Coselles and a gas capacity of 330 million standard cubic feet (mmscf).
The vessel size can be tailor-made to suit various requirements and could carry even a smaller gas load of 80 mmscf, officials said.
A standard Coselle carrier has just one-fourth of the capacity of an LNG carrier with 138,000 cubic meter capacity.
"Yet the savings on liquefaction and re-gassification would be economical," said H.P. Chandna, finance director of GAIL.
India has a gas demand of 119 million metric standard cubic meters per day (mmscmd). It is currently able to meet just half of this with an indigenous production of 65 mmscmd.
To bridge the growing gap, India is exploring various alternatives to source gas from overseas.
As GAIL explores the possibility of using Coselle technology to source CNG, in about five years, along with NIOC, it is also studying feasibility of an undersea pipeline from Iran.
GAIL is also eyeing Bangladesh as a potential source of gas and has started a consultancy study for CNG there with the technical assistance of Asian Development Bank.
The oil company is also pursuing CNG projects in Iran and Indonesia. GAIL has a strategic tie-up with Iranian Fuel Conservation Organization (IFCO) to market CNG for city gas and as auto fuel.
This collaboration is to be extended to India, officials said.
Source: IANS
Source: IANS