India launches its first LNG facility at Kolkata in two years

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India plans to launch its first LNG facility at Haldia dock at Kolkata port by 2018. The government makes it a part of the strategy to cut logistics costs and carbon emissions by increasing the use of the fuel for barges, Platts reports citing the shipping ministry.

Development of the LNG facility at Kolkata on a land lease model is planned to begin in December, the ministry said. It is considered to be a part of the government's plans to increase the use of clean transport fuel for inland waterways and coastal shipping. According to the plan existing barges will be switched from diesel to LNG and new LNG-fueled barges will be introduced in the main waterways of the Ganges river system that flows through India and Bangladesh.

State-owned Petronet LNG is now preparing a detailed feasibility report into the setting up of LNG facilities on the banks of the Ganges at four places by the end of the year. Ministry also added that the government is going to provide a 20% subsidy for the construction of LNG barges at Haldia, Sahibganj, Patna and Ghazipur on the main national waterways along the Ganges.