In a major technological breakthrough, oil retailer IBP Co Ltd has developed cryogenic trucks for transporting liquefied natural gas that eliminates need for conventional gas pipelines.

IBP has signed a memorandum of collaboration with Petronet for transporting LNG being imported at Dahej in Gujarat in specialised cryogenic bullet trucks to small indusrial consumers not situated on major gas pipeline routes.

"IBP, using technology from Chart Inc of the US, will move natural gas in its liquefied state (at minus 160 degree Celsius) to plants where through a simple vapourising process plant it will be converted into gaseous form for use as feedstock," PLL CEO and managing director Suresh Mathur said.

Petronet, India's first LNG importer, will set up a tanker filling station at its Dahej import terminal, from where IBP will transport LNG to industries not lying on the pipeline that currently transports the regassified LNG.

IBP would also put up LNG storage and a re-gassification unit at the customer end.

"India will be the second country after Japan to use cryogenic bullet trucks to transport LNG," Mathur said.

PLL director (technical) Sham Sunder said a pilot project in the first phase supplying LNG to captive power generation units would be set up.

"Initially, 550 tonnes to 1200 tonnes per month of LNG shall be supplied to consumers through the one truck IBP currently has."

"IBP has said it can supply as much as 2 million tonnes per annum of LNG when it gets more trucks," he said.

Mathur said the LNG price will not shoot up because of the setting up of re-gassifying unit at the customer end. He said PLL will not charge marketing margin on the gas it will sell to IBP for transportation through trucks.

Currently, the marketers of re-gasified LNG from Dahej charge up to $0.12 per million British thermal unit (mBtu) as marketing margin.

LNG is currently being sold at $4.8 per mBtu (including marketing margin).