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The managing director and CEO of India's Petronet LNG, Prabhat Singh, has stressed the need to improve the country's infrastructure in terms of pipeline connectivity as India moves forward with plans to develop its LNG bunkering network.

Referring to the low capacity utilisation of the Kochi LNG terminal, which has resulted in the facility running up high costs, he said the free flow of gas would ensure an uninterrupted fuel supply.

The comments come at a time when both Petronet and the government of India are involved in projects to develop LNG-fuelled vessels and LNG facilities for the maritime industry.

Earlier this year, in June, India's Ministry of Shipping said that the plan to bring LNG barges to the inland waterways is expected to commence navigation by the end of 2018.

Petronet and Inland Waterways Authority of India (IWAI) are undertaking a project to introduce LNG barges and encourage fuel-efficient cargo transportation. Petronet will design, construct and operate LNG unloading, storage, bunkering and reloading facilities on the National Waterways (NWs), whilst IWAI is to facilitate the switchover to LNG by persuading barge owners and operators of the benefits of LNG. IWAI will also provide land, for the setting up of LNG storage and will develop jetties to facilitate bunkering.

Other opportunities to utilise LNG barges on national waterways are being explored. Due to its proximity to LNG storage facilities, National Waterways in Goa offer opportunities in the transportation of iron ore and, for this reason, the introduction of LNG barges is also being considered for that region.

India currently produces a little under a quarter of its crude oil demand. It consumes around 195 million tonnes of crude-based oil products per year and this figure is expected to increase to 230 million tonnes by 2022, resulting in more dependence on crude and additional foreign exchange spending. Given the low processing cost to convert LNG as fuel compared to other fuelling options, Petronet's CEO says the differential savings in terms of energy equivalence would be $12 dollar per barrel compared to crude.

"When we are graduating for a better fuel for the future, there will be savings in our foreign exchange kitty and increase in fuel quantity," he said.