Shell Energy India has signed a memorandum of understanding (MoU) with INOX India to develop infrastructure and logistics to expand LNG supply to commercial, industrial and transport customers in India
The LNG would be supplied by tanker truck from Shell’s LNG Terminal in Hazira (District Surat), Gujarat.
Under the MoU, INOX will assist Shell to develop LNG supply by road to commercial and industrial customers not connected to the pipelines. The MoU also covers the co-operation in developing a larger market for LNG as a transport fuel for long-haul, heavy-duty trucks and buses.
Shell Energy India (SEI), a wholly owned subsidiary of Royal Dutch Shell, owns and operates a 5 mta LNG receiving, storage and regasification terminal at Hazira in Gujarat. SEI is building a truck-loading facility at its Hazira Terminal and the partnership with INOX will help Shell to develop the market for LNG as a fuel for city gas distribution, LCNG, industrial customers and auto fuel.
Announcing the MoU, INOX India executive director Siddharth Jain said, "A larger gas-based industrial ecosystem augurs well with the Indian economy and the environment. It is a win-win situation for all stakeholders."
Added Shell Energy India country head Ashwani Dudeja, "We look forward to working with INOX to deliver LNG by trucks and create access to LNG for customers not connected via pipeline. 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."
Since commissioning its first small-scale LNG installation at the Halol Plant of General Motors in 2010, INOX has installed about 35 such facilities under its GoLNG brand, distributing about 100,000 tonnes of LNG to consumers in India.