BPCL to construct new floating terminal for FLNG
India’s second-biggest public sector oil refining and hydrocarbon marketing company, the Bharat Petroleum Corporation Limited (BPCL), is investing heavily in the development of the gas business.
BPCL anticipates that the energy consumption of India will undergo a major change as the focus of consumers shifts to the cleaner sources of fuel in the upcoming time. For this, BPCL is investing heavily in the upgrade of its natural gas infrastructure.
Compared to other sources of fossil fuels like coal and crude oil, natural gas is cleaner and have much higher calorific value.
What is BPCL doing?
- BPCL has the plans to invest INR 1,500-1,700 crore to build a floating liquefied natural gas (FLNG) terminal at Krishnapatnam in Andhra Pradesh.
- While BPCL will hold a 74% stake in the project while the remaining 26% will be held by the Petronet LNG.
- This new project will be commissioned by 2022.
- The project at Krishnapatnam is the 6th LNG terminal to be set up on the coast.
Why FLNG is needed?
- Currently, the global oil and gas market is undergoing a rapid transformation due to mounting climatic concerns which are leading a change in the upcoming energy future and favoring a turn towards the natural gases and renewables.
- For India, the global demand for natural gas is stated to increase at a rate which is quicker than oil.