Gail to set up LNG dispensing infrastructure along Indian highways

Indian state-owned gas company Gail on March 14 announced its plans to invest 6.5bn rupees (approximately $78mn) to establish LNG dispensing infrastructure along major highways in India. This aims to bolster the country's sustainable fuel solutions and reduce carbon emissions in the transportation sector.

The proposed investment will primarily focus on setting up LNG dispensing stations along India's golden quadrilateral and major national highways, as well as in key mining areas. Gail's initiative is designed to provide last-mile connectivity for LNG transportation.

The company aims to capture more than 50% of the market share in the retail LNG sector within the next five to six years. This strategic move aligns with Gail's broader objective of expanding its natural gas portfolio and facilitating the transition from diesel to LNG, thereby reducing carbon footprint.

“This will help Gail in the retail LNG sector, leading to an increase in natural gas portfolio. By converting transport fuel from diesel to LNG, reduction in carbon footprint is envisaged,” the company said.

Gail is one of India’s largest natural gas companies with integrated operations across the value chain, including exploration and production, processing, transmission, distribution, marketing, petrochemicals, LNG trading and shipping, city gas distribution and related services. 

It sources LNG from various global partners, including the US, Qatar, Australia, and Russia, with a total portfolio of approximately 14mn tonnes/year. The company recently signed a long-term deal to buy LNG from UAE’s Adnoc and commodity trader Vitol. 

The Indian government has also been actively working to increase the share of gas in the overall energy mix, with a target of reaching 15% by 2030, up from the current 6-7%.