India’s push for low-carbon alternatives to petroleum products has opened the way for the setup of a $1.35 billion nationwide retail LNG platform.
Have you read?
LNG and the new Indian energy mix
The energy landscape in a Biden era and its implications for India
India-UAE eye energy cooperation boost
The India-US Strategic Energy Partnership stays strong
Collaboration with US key to India diversifying energy basket
Energy security and India’s growing ties with Myanmar
Collaboration with US key to India diversifying energy basket away from fossil fuels
India Natural Gas Exchange – one small step or a giant leap?
Indian govt finally gives up coal monopoly, opens up sector to pvt competition
Currently, LNG terminals at Dahej, Gujarat and Kochi, Kerala have set up LNG dispensation stations that supply fuel to buses that can run up to 900 kilometres from a single fill. While fitting into the broader decarbonization goals, the expansion effort will provide greater flexibility in domestic gas consumption and smooth the demand profile, assisting in providing stability for volumes of imported LNG. A mature market will be underpinned by long-term supply contracts, the securing of which provide input price visibility.
For long, compressed natural gas (CNG) has been the preferred low-carbon alternative to diesel for city vehicles, especially small cars and autorickshaws. While LNG requires to be cooled to -162 degrees Celsius for stable storage, the infrastructure required is of a higher cost compared to that for CNG. Yet, the high upfront costs matter less for long-distance users as LNG contains 250per cent the energy content for the same volume as CNG and can be effectively used in the growing transport sector. Facilitating last-mile delivery creates a reliable “sink” or end user base that will secure profits for integrated energy majors, and this attracts low-cost international capital and financing for capacity building in this segment.
The business case for ramping up a retail footprint has been taken on board by Shell, which aims to boost its downstream capabilities that will fit into its end-to-end supply chain. Last year, French energy giant Total acquired a 37.4per cent stake in Adani Gas Limited for $600 million as it competes for a share in the burgeoning demand and plans that its Indian partner will take the lead in participating in the terminal buildout programme down the line.
On the back of this, the expected initial consumption is around 25 million cubic meters/day and would grow as the 850 additional terminals are set up. 50per cent of Indian energy demand growth will be met by LNG by 2030, when total LNG imports are set to exceed 75 billion cubic meters. Reducing the fiscal deficit, the government hopes that shifting to a gas-based economy will shave off 30-40per cent of the energy import bill, of which heavy duty vehicle operators will experience the most benefits.
UK Ministers, Shadow Cabinet leaders, diplomats, business chiefs come together for India Global Forum’s grand Diwali Reception in London Read… Read More
At the India Global Forum’s (IGF) grand Diwali reception in London this week, UK Home Secretary Suella Braverman focussed her message of… Read More
Home Secretary Suella Braverman has said the UK is eager to secure a trade deal with India to boost both… Read More
Chandrasekhar also attended a session on the Future of Digital at the India Global Forum where he spoke on the… Read More
India Global Forum’s glittering awards ceremony with Guest of Honour, UK Chancellor Rishi Sunak, to mark the culmination of a… Read More
The UK government on Wednesday announced 75 fully-funded scholarships for Indian students to study in the UK, beginning September 2022,… Read More
View Comments