GAIL Achieves World’s First Ship-to-Ship LNG Transfer, Slashes CO2 Emissions

GAIL, India’s leading gas company, has successfully executed the world’s first ship-to-ship liquefied natural gas (LNG) transfer, aiming to reduce shipping costs and curb emissions. GAIL holds a contract for 5.8 million tonnes per annum of LNG from the US, transported to India through LNG ships. Traditionally, this journey spans about 19,554 nautical miles, emitting approximately 15,600 tonnes of CO2 during the 54-day round trip.

In a groundbreaking move, GAIL arranged a ship-to-ship (STS) transfer mid-way through the journey. The company’s vessel Castillo De Santisteban transferred LNG cargo to the chartered vessel Al Gharrafa of QatarGas. This innovation resulted in a reduction of 8,736 nautical miles, equivalent to 7,000 tonnes of CO2 emission. The total voyage time for GAIL’s chartered vessel was shortened from 54 days to around 27 days, contributing to savings of over USD 1 million.

“This is the world’s first STS between a large conventional LNG vessel and a Q-Flex LNG Vessel,” emphasized an official from GAIL. The QatarGas vessel proceeded to Dahej in Gujarat to discharge the cargo originally intended for GAIL’s vessel, while GAIL’s vessel returned from Gibraltar to the next loading port.

The success of this initiative, coupled with the installation of the first floating CNG station, earned GAIL the ‘Innovation Award – India and Midstream Project of the Year’ at the Asian Oil and Gas Awards.

GAIL’s inventive approach holds promise for the entire LNG shipping industry, demonstrating that unique contractual arrangements can significantly reduce shipping distances, leading to substantial carbon emission savings.

If this concept is scaled up, considering a minimum of two cargoes per month, it could result in distance savings of 2,09,664 nautical miles per year, translating to an emission saving of 1,67,731 tons of CO2 and increased vessel utilization.