Inox India, Shell Partner on LNG Distribution in India

Indian cryogenic liquid storage, distribution, and regasification solutions provider Inox India has signed a memorandum of understanding (MoU) with Anglo-Dutch major Shell to develop a market for LNG supply by road from the Shell-operated Hazira terminal in Gujarat, it said March 18.

The company plans to deploy infrastructure including logistics and receiving facilities at customer end and offer LNG access to the customers not connected to the pipelines.

“This will help in increasing the penetration and consumption of clean, reliable and cost-efficient LNG to commercial and industrial users all over the country. The MoU also covers the cooperation in developing a larger market for LNG as a transport fuel for long haul heavy-duty trucks and buses,” Inox said.

“We are delighted that our collaborated efforts will make this green fuel more accessible. A larger gas-based industrial ecosystem augurs well with the Indian economy as well as for the environment at the same time and is a win-win situation for all stakeholders,” Siddharth Jain, executive director, Inox India said.

Shell Energy India is building a truck loading facility at its 5mn metric tons/year Hazira terminal. “There is a growing demand for gas, the cleanest-burning fossil fuel, from the city gas distribution sector, commercial and industrial customers and as a fuel for heavy-duty transport. We are excited to explore this new segment and develop other such partnerships which will enable us to continue playing a key role in meeting India's long-term need for more and cleaner energy," Ashwani Dudeja, country head, Shell Energy India said.

India is promoting greater use of gas in the economy in order to tackle air pollution. The government is targeting to increase its share in the energy mix from 6% at present to 15% by 2030. It expects the city gas sector to be a major demand driver.