Repurpose LNG infra to make ports GH2 export hubs, say ports body

Report calls for establishing common user infrastructure for quickly setting up green hydrogen facilities

Indian ports would need to take up extensive reforms like repurposing existing Liquefied Natural Gas (LNG) terminals for green hydrogen (GH2) derivatives such as green ammonia, and setting up common user infrastructure frameworks to become export hub for GH2, a report by the Indian Ports Association (IPA) has suggested. IPA is a body of major ports in India under the control of the Ministry of Ports, Shipping and Waterways.

 

While developing hydrogen pipelines is essential, high costs — 70-80 per cent from materials, labour, and construction — and challenges like securing rights of way make repurposing underutilised pipelines appealing, the report reviewed by Business Standard said. “India’s LNG import terminals could be retrofitted to handle the export of GH2 derivatives such as ammonia. Clear cost advantage arguments are evident for repurposing LNG import terminals,” the report by US-based energy think tank RMI and the IPA pointed out.

 

Produced using renewable energy (RE) sources, green ammonia is a sustainable form of ammonia (NH₃), and serves as a versatile energy carrier, fertiliser feedstock, and clean fuel alternative. The National Green Hydrogen Mission is currently targeting production of 5 million tonnes of GH2 by 2030 to provide an alternative to imported crude oil for transportation, industrial uses, and energy storage.

 

According to the study, constructing greenfield ammonia terminals with a capacity of 5 million tonnes per year is estimated to cost ₹20,401-21,209 crore. In contrast, repurposing LNG terminals — either after or before commissioning — would cost approximately ₹14,766-12,581 crore, assuming a 30-year operational lifespan. 

 

Dedicated frameworks for common user infrastructure such as intra-port pipelines, storage units, electricity transmission and distribution, water and CO2 (carbon dioxide) pipelines have also been suggested.

 

"This will be fundamental in establishing GH2 facilities, enabling ports to become central hubs. Emerging port hubs could serve both domestic and export markets, leveraging their proximity to industrial clusters such as fertiliser producers and refineries, presence of existing infrastructures like storage and distribution systems, access to international trade, and the captive demand from shipping and logistics operations,” the report said.

 

The report also suggested ports to act as energy aggregators by partnering with distribution companies and independent power producers to pool demand from existing port industries — the scale would allow them to secure RE at lower prices.

Challenges remain

However, retrofitting comes with its own set of challenges. According to the study, hydrogen’s unique properties, such as lower density and the risk of embrittlement, require significant upgrades to materials, equipment, and safety systems.

 

“Hydrogen’s higher susceptibility to leaks means that each component of the existing infrastructure must be thoroughly analysed for technical limitations, including pipeline compatibility, leakage risks, and the need for enhanced monitoring systems,” it said.

 

India currently operates eight LNG terminals run by state-owned companies such as Petronet, NTPC, and Indian Oil, as well as private entities lime Shell, among others. The cost of retrofitting or converting these terminals for ammonia would be around $105 per tonne, the report said. 

 

Existing terminal operators would also need to come on board. "Beyond Petronet's terminal Dahej, most regasified LNG terminals have struggled with low capacity utilisation due to insufficient pipeline connectivity, a gas market that is still developing, and lack of coordinated planning. But another crucial factor is the limited number of long-term contracts signed between terminals and major offtakers,” an official from a public sector energy major said.

 

The government wants to position India as an export hub for GH2 and green ammonia. The report suggested that east coast ports like Tuticorin and Paradip are strategically located to serve major Asian demand centres like Japan, Singapore, and South Korea. These countries are expected to require significant green ammonia imports, and 4.4 million tonnes of hydrogen equivalent as part of their decarbonisation goals by 2030. Similarly, west coast ports can service European demand, which has projected a 10-million-tonne hydrogen import by 2030. 

Utilising the existing systems

 

*  Repurposing LNG terminals for green ammonia to save ₹7,000-8,000 crore, assuming a 30-year operational lifespan 

  *  East coast ports can service Japan, Singapore, South Korea’s 4.4 mt of H2 demand by 2030

  *  10 mn tonne of demand from Europe can be met by ports on the Western coast

  *  Ports can be energy aggregators by partnering with discoms and independent power producers to pool demand