Shell’s India unit said on Tuesday it launched a truck loading unit at its Hazira LNG import terminal in Gujarat, the firm’s first move into small-scale infrastructure.
Shell Energy India says the new facility will now augment the company’s natural gas supply offerings in India to include supply of LNG via trucks.
India’s oil and gas minister Dharmendra Pradhan said during a virtual inauguration that supply solutions like LNG by trucks would play a pivotal role in the development of gas markets across the country including hinterlands.
“This infrastructure will also help support in the development of LNG as a clean transportation fuel,” he said.
Nakul Raheja, who has recently taken over as country head, Shell Energy India added this development extends the company’s downstream customer offering.
“Now, in addition to supply of R-LNG via pipeline, we can also supply LNG by trucks to customers across India. I look forward to this segment advancing in the years ahead and hope to also see LNG developing as a cleaner energy option for heavy duty transport in India,” he said.
Boosting small-scale LNG
The government of India is promoting natural gas through various policy and regulatory reforms towards making the country a gas-based economy by increasing the share of the fuel in the primary energy mix to 15 percent.
In addition, small-scale LNG can play an important role in realizing this target as it enhances clean energy access across the country, Shell Energy India says.
While gas customers in industrial clusters are expected to be the primary beneficiaries, small-scale LNG will also support the market seeding and development of the recently licensed CGD geographical areas, not yet connected by pipelines.
Apart from industrial and CGD segments, the small-scale LNG supply infrastructure will also contribute to the development of conducive eco-system for faster adoption of LNG as the preferred transportation fuel for vehicles especially for long-haul transport, the firm said.
Shell Energy India owns and operates the 5 mtpa LNG import terminal at Hazira. The terminal has been in operation since 2005 and received more than 600 LNG cargoes till date.