INOXCVA and Adani Total Gas partner to boost India’s LNG network

India-based city gas distribution company Adani Total Gas Ltd (Adani) will collaborate with INOX India Ltd (INOXCVA) to ‘mutually accord’ a preferred partner status for the delivery of liquefied natural gas (LNG) and liquefied compressed natural gas (LCNG) equipment and services for assessing opportunities for strengthening the LNG ecosystem in the country.

Under a mutual support agreement, Adani will gain preferential treatment and access to advancing scheduling in addition to consideration for opportunities for establishing LNG/LCNG stations, LNG satellite stations, transitioning to LNG as a transport fuel, LNG logistics and the development of small-scale liquid hydrogen solutions for the industry.

The deal also encourages both parties to develop LNG infrastructure including small-scale LNG plants, LNG stations, bringing economies of scale for conversion of heavy vehicles on LNG, developing best practices towards HSE, fuel efficiency, and conversion and service.


Citing India’s rapid industrial growth and ‘huge increase’ in heavy vehicles, Suresh P. Manglani, Executive Director & CEO, Adani, said, This partnership with INOXCVA shall help Adani in furthering phased transition of long-haul heavy vehicles, buses currently using HSD/diesel to LNG, thereby helping over 30% reduction in carbon dioxide (CO2) and GHG emissions.”

According to India’s International Trade Administration, the country’s government announced in 2018 its plans to raise the share of natural gas in India’s energy mix from 6.5% to 15%.

“As our economy prepares to go on overdrive, it is imperative that we also maintain a focus on ensuring that the transition happens in a sustainable manner,” said Siddharth Jain, Promoter and Non-Executive Director at INOXCA.

As the world’s fourth largest buyer of LNG, after Japan, South Korea and China, India’s imports are set for a 7-8% boost this year on hopes of softer prices.

India currently has about 25 GW (gigawatts) of gas-based power capacity installed, translating to about 30 – 30m metric tonnes per year of LNG demand, revealed a report by S&P Global Commodity Insights.

Although the power sector is expected to continue to be a significant consumer of LNG, the growth in the industrial and fertiliser sectors is anticipated to contribute substantially, especially against the backdrop of India’s plan to eliminate urea imports by 2025.

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