Shell, INOX India Sign MoU for LNG Distribution

(P&GJ) — INOX India has signed a Memorandum of Understanding (MoU) with Shell Energy India to develop the market for LNG supply by road from Shell’s Hazira LNG terminal in Gujarat, India. 

The MoU envisages deployment of distribution infrastructure including logistics and receiving facilities at customer end and will offer LNG access to the customers not connected to the pipelines.

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.

This deal follows one signed last month with ExxonMobil, India Oil, and Chart Industries to develop a similar virtual pipeline network. 

Shell Energy India (SEI) owns and operates a 5 MMTPA 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 preferred fuel in the rapidly growing city gas distribution, LCNG and industrial sector as well as usage of LNG as an automotive fuel.

Announcing the MoU, Siddharth Jain, Executive Director, INOX India said, "A larger gas-based industrial ecosystem augurs well with Indian economy as well as for the environment at the same time and is a win-win situation for all stakeholders."

Speaking on the occasion, Ashwani Dudeja, Country Head, Shell Energy India added, "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, 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 Gneral Motors Halol Plant in 2010, INOX has successfully installed more than 35 such facilities across the country, under its GoLNG brand. INOX's GoLNG transport tankers have collectively logged more than 6.5 Million KMs and distributed ~100,000 metric tonnes of LNG to its consumers spread all over the country.

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