The company plans to build a network of 50 LNG retail outlets along major highways, ports, mines, and industrial hubs by investing INR 200-250 crore over the next three to five years.Adani Total Gas (ATGL), the equal joint venture of Adani Gas and French energy major Total Gas, plans to harness liquefied natural gas for the transport and mining segments.
LNG for transport caters to the long-haul trucks and buses segment. LNG for mining will allow the company to get into the mining spots in the country. Currently, diesel is the fuel that runs mining trucks and earth moving equipment.
"Now we are entering into another adjacent business called LNG for transport and mining (LTM), which could be another big opportunity for us to seize. We have commissioned our first LNG station in Tirupur, Tamil Nadu, and many LNG stations are at various stages of construction and commissioning," Suresh Manglani, executive director and chief executive officer, ATGL, told analysts on the second quarter earnings call.
The company plans to build a network of 50 LNG retail outlets along major highways, ports, mines, and industrial hubs by investing INR 200-250 crore over the next three to five years.
Officials at oil companies said setting up an LNG station costs anywhere up to INR 8-12 crore while a fuel retail outlet costs only up to INR 1.5 crore. Oil companies are evaluating options to expand CNG dispensing stations to include LNG too.
Improved road infrastructure and liquefied natural gas pricing have made the long-haul LNG trucking segment attractive for energy companies. Early this year state-owned gas marketer and transporter Gail India committed an investment of INR 650 crore to set up LNG filling stations along the Golden Quadrilateral, major national highways, and mining hubs. The company aims to capture more than 50% market share by 2030. Other public and private energy providers are also firming up plans to enter the LNG long-haul trucking segment.
