Small Scale LNG (SSLNG) is a concept and a supply chain mechanism for distributing Liquefied Natural Gas (LNG) in smaller volumes than traditional, large-scale operations. It is broadly defined as a natural gas value chain that processes volumes below 500,000 tons per annum (MTPA), though some definitions extend the upper limit to 1 MTPA. Conventional LNG facilities, by contrast, can have throughputs as high as 11 MTPA.
The concept's origin is rooted in solving the problem of supplying natural gas to off-grid and remote locations where building expensive, large-scale pipelines is not economically viable. While the history of LNG itself dates back to the early 20th century, with the first LNG plant operating in West Virginia in 1917, the application of small-scale plants for purposes like peak shaving in the US began in the 1940s. SSLNG has emerged more recently as a flexible, modular alternative to monetize small or remote gas fields and serve markets previously unsuited to LNG.
SSLNG works by creating a "virtual pipeline" to transport the super-cooled liquid gas, which is stored at -162°C, via unconventional mediums like cryogenic truck tankers, ISO containers, or small vessels, instead of relying on fixed pipelines. The LNG is typically sourced from large import terminals or small liquefaction plants and then delivered to the end-user, where it is either used directly as a liquid fuel or regasified. This mechanism allows for the supply of natural gas to small industrial consumers, City Gas Distribution (CGD) entities, and as an automotive fuel for heavy-duty vehicles.
In India, SSLNG connects directly to the government's goal of increasing the share of natural gas in the primary energy mix to 15% by 2030. It is supported by the Ministry of Petroleum and Natural Gas (MoPNG) and is seen as a critical enabler for expanding the CGD network and supplying remote industrial clusters. A recent development is the inauguration of India's first SSLNG unit at GAIL (India) Ltd's Vijaipur complex in Madhya Pradesh in 2024. Furthermore, the Oil and Natural Gas Corporation (ONGC) is exploring plans to set up mini-LNG plants to utilize stranded gas from wells lacking pipeline connectivity. The Petroleum and Natural Gas Regulatory Board (PNGRB) is also involved in promoting the infrastructure for this sector.