LNG Usage : Inland Waterways & Coastal Shipping in India. Dr Ranjit Rath Corporate Strategy & BD Engineers India Ltd.

Transcription

1 LNG Usage : Inland Waterways & Coastal Shipping in India Dr Ranjit Rath Corporate Strategy & BD Engineers India Ltd. r.rath@eil.co.in February 2017

2 Welcome

3 Welcome Setting the Context SAGARMALA Inland Waterways and Coastal Shipments Bunkering Opportunities Positive Outlook

4 Setting the Context Research suggests that the mid stream segment is the most crucial bottleneck from a supply chain perspective thus needs more focused attention for energy security

5 Setting the Context Emission Control Areas and Norms MARPOL Annex VI in force from 19 th May 2005 limits the maximum sulphur content of fuel to 4.5%. This changes to 3.5% after 1 st Jan 2012 and to 0.5% after 2020 (or 2025, depending on the outcome of a review in 2018.)

6 Setting the Context INDIA Regional Drivers for Small Scale LNG value Chain

7 SAGARMALA 7500 km coastline 13 States & Union Territories km of navigable waterways International Suez - Far East Trade Route

8 SAGARMALA LUDHIANA EASTERN DFC PANIPAT WESTERN DFC MADHOSINGH DADRI AGRA ALLAHABAD GWALIOR NW 1 DHUBRI NW 2 SADIYA MUNDRA KANDLA DAHEJ SIKKA HAZIRA PIPAVAV VADHAVAN MUMBAI HYDERABAD JNPT DIGHI JAIGARH MORMUGAO NW 4 BELEKERI NMPT PUDUCHERRY KOTTAPURAM TALCHER VIZAG GANGAVARAM KAKINADA VODAREVU KRISHNAPATNAM KATUPALLI ENNORE CHENNAI SIRKAZHI DANKUNJ KOLKATA SAGAR HALDIA DHAMRA SOUTH SATELLITE PORT PARADIP GOPALPUR NW 5 COCHIN KOLLAM VIZHINJAM NW 3 KARAIKAL TUTICORIN ENAYAM

9 SAGARMALA A B Legend: Refineries Major Ports

10 SAGARMALA Water Ways No. of Power Plants* No. of Fertilizer Plants NW NW NW NW NW-5-2 Combined Capacity of these gas based power plants is ~9500MW and AP has highest stranded gas based capacity KOTTAPURAM 2 KOLLAM NW 3 NW 4 ALLAHABAD NW 1 3 NW 5 TALCHER 2 2 DHUBRI 3 NW 2 No. of Power Plants SADIYA No. of Fertilizer Plants

11 SAGARMALA Policy Frameworks Integrated National Waterways Transport Grid (INWTG) Creation of national waterway networks and connection with major high ways; Least Allowable Depth of 2.5m; Upgradation and setting up of priority terminals; Establishment of rail, road and port connectivity Sagarmala Project Jal Marg Vikas Connection of 12 smart port cities with prominence to coastal shipping and coastal economic zones Development of Haldia-Allahabad stretch of NW1 with Least Allowable Depth (LAD) of 3 metres, Night Navigation, River Information System & Differential Global Positioning Service to big cities like Haldia, Howrah, Kolkata, Bhagalpur, Patna, Ghazipur, Varanasi, Allahabad. National Waterways Act 2015 Dedicated Freight Corridors MOUs between IWAI and DFCCIL Bulk Transport Planning Group Declaration of 101 water bodies as National Waterways And 1000 new barges envisaged 7 DFCs planned dotted with investment regions, industrial parks, ports, airports and mega multi-modal logistic parks Development of state-of-the-art intermodal hubs First hub at Varanasi enhanced co-ordination between different ministries involvement of stakeholders from natural gas, power and railways

12 Inland Waterways-Opportunities Transport share of Cargos Roadways 55% (Rs. 1.5 / km) Railways 35% (Re. 1 / km) Waterways 06% (50 paise / km) IWT coupled with Coastal shipment offer a convenient transport solution with reduced per ton fuel consumption & carbon emissions.

13 Inland Water Transport & Coastal Shipments National Waterway 1: (1620 km) Haldia (Sagar) & Allahabad National Waterway 2: 891 km Bangladesh Border and Sadiya National Waterway 3: 181 Km Kottapuram to Kollam National Waterway 4: 1095 km Godavari & Krishna rivers & Canals between Kakinada and Puducherry National Waterway 5: 623 km Brahmani river & Mahanadi delta system along with East Coast Canal 3 terminals 1 terminal 1 terminal 2 terminals 1 terminal

14 Inland Water Transport & Coastal Shipments Potential Trading Routes Inter-Terminal Transportation Kochi Hub Model C D B A Source Innovative Solutions for Small Scale LNG Logistics & Infrastructure IM SKAUGEN SE Source Future Prospects of LNG in India - A.T. Kearney

15 Inland Water Transport & Coastal Shipments Existing Terminals Proposed Terminals Domestic Mainland Demand Domestic Island Demand Export Opportunities Dahej Mundra Refineries and Petrochemicals Andaman & Nicobar Islands Myanmar Hazira 5-7.5MMT Chhara Power Plants Laccadive Islands Bangladesh Dabhol Kakinada Fertilizer Plants Maldives Kochi Gangavaram Chemical Plants Sri Lanka Ennore Dhamra CGD

16 Inland Water Transport & Coastal Shipments Existing Terminals Proposed Terminals A Domestic Mainland Demand Domestic Island Demand Export A Opportunities Dahej Mundra Refineries and Petrochemicals Andaman & Nicobar Islands Myanmar Hazira 5-7.5MMT Chhara New Delhi Power Plants ALLAHABAD Laccadive Islands NW 1 DHUBRI NW 2 SADIYA Bangladesh Dabhol Kakinada Fertilizer Mumbai Plants NW 5 TALCHER 1350 nm Maldives 1600 nm Kochi Gangavaram 950 Chemical nm Plants NW 4 Sri Lanka Ennore Dhamra KOTTAPURAM CGD KOLLAM NW nm

17 Inland Water Transport & Coastal Shipments Existing Terminals Dahej Hazira 5-7.5MMT Dabhol Kochi Proposed Terminals Mundra Chhara Kakinada Gangavaram Domestic Mainland Demand Refineries and Petrochemicals 2 x 5000 cbm Dia ~13m Length Power ~ 27m LOA ~ Plants 130m Beam width ~22m Draught ~ 6m Fertilizer Plants Chemical Plants Domestic Island Demand Andaman & Nicobar Islands Laccadive Islands Export Opportunities A Collaborative Framework is in place between EIL and CSL for small scale LNG carriers cbm Myanmar 2 x 1000 cbm Dia ~7m Length ~ 20m LOA ~ 90m Beam width ~12m Draught ~ 2m ( LAD 2m) 2000cbm Bangladesh Maldives Sri Lanka Ennore Dhamra Coastal Shipments CGD Inland Waterway Shipments

18 Bunkering Opportunities Bunkering Fuel accounts for about 30% to 40% of OPEX for ships Indian Ports lack adequate bunkering facilities Asia accounts for about 40% of global bunker sales Singapore and Fujairah are the major bunkering hub Regulatory Challenges Taxation and Tax Jurisdiction Constrained facilities & consequent stipulations for monsoon & night bunkering Port charges for bunkering Infrastructure Challenges Lack of bunkering facilities after sunset Bunkering set up Shore reception facilities Floating barges and off Port Limits facilities Ships calling to Indian Ports get bunker fuels from Singapore & Fujairah Potential for bunkering would grow to 1PA in 2025 Challenges

19 Bunkering Opportunities A A Containerized cargo and bulk commodities movement catering to North and Western Hinterlands of India 950 nm New Delhi KOTTAPURAM KOLLAM NW 3 NW 4 ALLAHABAD Mumbai JNPT Paradip 1350 nm Enayam NW 1 NW 5 TALCHER DHUBRI 1500 nm NW 2 SADIYA 1600 nm En-route of transhipment catering to traffic from Middle East to East Asia and from East Asia to Africa Energy Gateway for Eastern & North Eastern Region of India catering to National Waterways

20 QUANTITY (Mn Cu Mtrs) Inland Waterways-Opportunities 40 Dredging & Revenue towards mining of sand CSD / TSHD & pipeline transportation mined sand Navigability 5 & Creation of Land 0 (Cost) NW - 1 NW - 2 NW - 3 NW - 4 NW - 5 NW NWs Capital Dredging Maintenance Dredging Ports of 15m draught ($4 / cbm) Capital Dredging Maintenance Dredging Estimated total capital & annual maintenance dredging of 100 Million cbm Source : IWAI & ICORP Inland Waterways of 3 m LAD ($2/ cbm) Revenue Mined Sand / Land fill Material

21 Inland Water ways Navigational Infrastructure Modal Integration Inclusive Participation Positive Outlook Distance of waterways tend to be higher with meandering channel Viability gets constrained Dependent on first mile and last mile connectivity Dredging for navigability & maintenance of LAD Adequate clearance for air draft Augmentation of IWT terminals Development of night navigation and River Information System Last mile Connectivity Identification of Multi modal corridors Creation of Industrial Clusters along the IWT Development of SMART Industrial Port Cities Federal & State Govts. Collaboration with land locked countries - Nepal & Bhutan Bangladesh Protocol route for NE region connectivity Pvt. Sector participation for cargo movement & riverine tourism

22 Thank You for Kind Attention Dr Ranjit Rath Corporate Strategy & BD Engineers India Ltd. February 2017