GAIL (India) has set up a satellite liquefied natural gas (LNG) terminal in Bhubaneswar, Odisha, to supply local customers in the absence of a gas pipeline. The company which has a licence to supply gas to Bhubaneswar decided in 2018 not to wait for the gas pipeline, which is expected to connect the city in 2020.

GAIL (India) started using gas cascades to supply natural gas to homes, shops and vehicles. This involved bringing in gas cascades from Andhra Pradesh to serve local demand, which is about 3,800 kg a day.

The satellite LNG storage and regasification terminal can cater to 3,000 compressed natural gas (CNG) vehicles and 1,000 homes. This is the first such operation in the country. The terminal contains two verticals tanks of 20 kilo ltr each, and low pressure vaporiser for supply to homes, and high pressure vaporiser for CNG vehicles.

Each tank has to be replenished every three-four days by LNG brought by road from Gujarat port. This is a short-term arrangement until the Urja Ganga gas pipeline reaches Bhubaneswar. Using LNG station is better than using gas cascades as the latter involves higher transportation cost and increased delivery uncertainty.