The Singapore-based project developer will invest in
virtual pipelines, downstream gas market integration, and LNG (Liquified Natural Gas) bunkering.
SINGAPORE--- LNG Alliance Pte Ltd today announced that
it'sit is opening a new office in Chennai, India. LNG Alliance Pte Ltd is a
leading independent project developer in the natural gas and liquefied natural
gas (LNG) sector. The team at the Chennai Office will assist the company in
forging ahead with the development of India's virtual gas pipelines, downstream
gas market integration, and LNG bunkering possibilities.
LNG
Alliance's introduction to India will be a timely one. India seeks to raise the
share of natural gas in its energy mix from its current 6.2% to 15% by 2030 and
is currently scouting for affordable gas for price-sensitive customers.
LNG Alliance plans to develop an end-to-end solution
for India, using its strategic ownership positions in low-cost LNG supply at
around $4/mmBtu on a long-term basis to meet India's LNG demand.
"We are now in a position to deliver LNG thru
virtual pipelines, which can be a reliable source for City Gas Distribution
(CGD), for industrial users and LNG/CNG based fuel stations. For the first time
in the energy history of India, we can replace coal with natural gas for power
generation. Natural Gas is more environmentally friendly and provides us
cleaner energywith a very competitivean incredibly competitive pricing point,"
said Ms. Cheryl Goh, LNG Alliance's Executive Director. "The regasified
LNG, tied together with last-mile gas pipeline or virtual pipeline
connectivity, could revive more than 10 GW of idle CCGT gas-based power plants
in India."
The Indian gas market is projected to be the fastest-growingfastest growing in the world over
the next two decades. LNG Alliance is working with gas companies in India to
build a robust virtual pipeline network to ensure that downstream gas supply
remains resilient and undisrupted, allowing it to meet increased energy demand
from industries and citizens.
The implementation of a flexible virtual pipeline
network will serve as a temporary transportation solution while India's
physical gas pipeline infrastructure is developed. This also becomes a
long-term option in areas where physical natural gas pipelines are not viable.
With the overarching goal of bringing affordable and
reliable gas supply to India, LNG Alliance is also working with potential
third-party usage of existing terminals to maximize their utilization. LNG
Alliance is also setting up two LNG bunkering hubs – one on the East Coast and
one on the West. At the same time, LNG Alliance has lined up potential
investors who have expressed interest in India's virtual pipeline infrastructure.
"With these developments, we aim to create price
transparency within the gas market on an open platform and discover an
effective mechanism to accelerate the growth of City Gas Distribution,"
said Dr. Muthu Chezhian, the CEO of LNG Alliance. "There is vast potential
for the gas and energy market in India to grow exponentially.LNG as a greener
and economic automotive fuel for Medium and Heavy Commercial Vehicles reduces
fuel cost by about 25% and can reduce the national dependence of imported oil by
30%."
"We are also in talks about a potential
investment in an East Coast LNG terminal in India. We are working closely with
our local partners in India, for establishing LNG fuel stations. This enables
us to achieve common goals and co-create success for our regional customers by
adapting a professional value creation approach, and bringing affordable LNG to
the communities in need," Dr. Chezhian said.
LNG Alliance is setting up an office base in Chennai
for managing South India's LNG/gas downstream aggregation and virtual pipelines
venture. As the next stage of expansion, the company is also looking into a new
project office in Chattogram, Bangladesh, aligned with its plan for developing
an onshore LNG terminal.
About LNG Alliance: LNG Allianceis headquartered in
Singapore with subsidiary offices and affiliated entities in the USA, Mexico,
and Indonesia, and has experience in LNG Asset Investments, LNG Import and
Regasification Terminals, LNG Bunkering (LNG as fuel for ships) and LNG
Distribution/Retail Markets.
As a niche market player, LNG Alliance – backed by two
major Asian national energy companies – is leading the development of a modern
LNG liquefaction facility on Mexico's west coast and launching North America's
first Waha Hub-based LNG export terminal.
By using the ultra-low-cost Permian gas, which is at
least a dollar cheaper than the Henry Hub, this terminal will produce the most
competitively-pricedc ompetitively priced LNG from the region.
The shipping cost to India and Bangladesh is reduced
by 42%, due to shorter shipping distance and bypassing the Panama Canal fee.
The resulting pricing point,about 4$/mmBtu on a long-term basis, make it a clear
contender for replacing coal.
On the LNG
import terminal segment, LNG Alliance's Executive and Operations team have
decades of combined experience from LNG terminal developments and operations
gained from multiple projects in the Americas, Middle East, and Asia, and have
ongoing projects in Mexico, the Caribbean, Indonesia, and Latin America.
LNG, Natural Gas market, LNG Alliance, CGD
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