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Liquefied Natural Gas (LNG)
Context:
India’s liquefied natural gas (LNG) imports touched a near four-year high as gas-based power output jumps amid severe heatwave.
More on News:
- India imported 2.60 million tonnes (mt) of LNG in June 2024, marking a 44-month high.
- Plant load factor (PLF) (capacity utilisation of power generation units) for gas-based plants rose to 25.8% in June 2024, up from 17% in June 2023.
- In June, power generation from gas-based units saw a 52% increase compared to the same month last year, according to Central Electricity Authority (CEA).
Liquefied Natural Gas (LNG)
- It is natural gas cooled to about -260°F to condense it into liquid form, reducing its volume by about 600 times for easier transport.
- It emits 40% less CO2 than coal and 30% less than oil, making it the cleanest fossil fuel with minimal emissions of pollutants like soot, dust, and sulphur dioxide.
- Predominantly methane (85-95%), LNG has a lower carbon content than other fossil fuels, though its composition can vary.
- Global LNG demand is projected to grow by over 50% by 2040 (Shell LNG Outlook 2024),
- Driven by industrial coal-to-gas switching in China and increased use in South Asian and Southeast Asian economies to support economic growth.
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Government steps:
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Gas-Based Power Plants and Energy Security
- Gas-based power plants use both domestic natural gas and imported LNG.
- Imported LNG accounted for around 56% of the total natural gas consumed by power plants in April 2024.
- The Power Ministry instructed gas-based plants to operate to meet summer demand, invoking Section 11 of the Electricity Act, 2003.
Challenges Related to LNG Adoption
- Building LNG facilities and using specialised cryogenic carriers add significant costs.
- India faces challenges like limited availability of LNG vehicles, high initial costs, and insufficient financing and retail networks.
- LNG is cleaner than coal but still emits methane, a potent greenhouse gas.
- LNG is highly flammable, posing risks such as leaks, fires, and explosions if mishandled.
