Inox India has signed a memorandum of understanding with Shell Energy India, a unit of the Hague-based LNG giant Shell, to partner up on liquefied natural gas supply by road in Gujarat.
The MoU envisages deployment of distribution infrastructure including logistics and receiving facilities at customer end and will offer LNG access to customers not connected to the pipelines, Inox said in its statement.
This is aimed to help increase penetration and consumption of LNG by commercial and industrial users in India. The MoU also covers the cooperation in developing a larger market for LNG as a transport fuel for long-haul heavy-duty trucks and busses.
Shell owns and operates a 5 mtpa LNG receiving, storage and regasification facility at Hazira in Gujarat (Hauira LNG terminal). Shell Energy India is currently building a truck loading facility at the terminal and expects the partnership with Inox to help it develop the market for LNG as a preferred fuel.
Speaking of the MoU, Ashwani Dudeja, country head, Shell Energy India said that there is a growing demand for gas from the city gas distribution sector, commercial and industrial customers and as a fuel for heavy-duty transport.
The company aims to explore this new segment a develop similar partnerships in order to meet India’s long-term demands.