Spacenet, Russia's Modern Fuel to develop LNG stations across India
India’s Spacenet Enterprises and Russia-based Modern Fuel Technologies have formed a joint venture to develop LNG stations across India, Spacenet announced on August 1. In the first phase (FY2025-27), the joint venture will set up 20 LNG stations and fuel retail outlets across the country. This will be expanded to 180 in the second phase.
“This partnership will be a significant step towards enhancing India’s LNG infrastructure and promoting cleaner energy solutions,” Prakash Dasigi, executive director of Spacenet Enterprises, commented.
Spacenet noted that the shift towards natural gas as an alternative fuel for automobiles is accelerating due to its higher efficiency and cleaner emissions compared to traditional fossil fuels. Natural gas is 30-40% more efficient and produces 40% less carbon dioxide (CO2) than coal and 30% less than oil, it said.
The joint venture will also promote retrofitting heavy commercial vehicles to use LNG. In this joint venture, Spacenet will hold a 15-25% stake.
The Indian government aims to increase the share of natural gas in the overall energy mix to 15% by 2030, up from the current 6-7%, with the transportation sector seen as a major driver for demand growth.
Late last year, Indian state-owned container handling company Container Corporation of India (CONCOR) and city gas firm Indraprastha Gas (IGL) signed a memorandum of understanding (MoU) to explore the possibility of setting up LNG/LCNG dispensing infrastructure within the premises of CONCOR terminals.
Initially, both LNG and LCNG facilities will be installed at CONCOR's Dadri terminal, located in the northern Indian state of Uttar Pradesh. The companies have also agreed to explore the possibility of transporting LNG in the future through railway rakes from LNG terminals near seaports to locations within India.
Indian logistics companies are also promoting the use of LNG in long-haul transportation. Mumbai-based GreenLine Logistics is set to deploy 5,000 LNG-powered trucks in the fiscal year ending March 2025 (FY25), marking a significant expansion in its capabilities. It currently operates a fleet of over 350 LNG-powered trucks, serving a diverse range of customers across multiple industries.