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Shell To Build LNG Plants In India, Citing The Country’s Promising Gas Market

TNI || New Delhi || 11th April 2022

Shell, world’s major oil company, will enter the retailing of LNG for long-haul transportation, such as trucks, with its first filling station set to open in Gujarat this year because it bets big on the Indian gas market, as per a senior company official.

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Shell has a liquefied natural gas (LNG) import facility at Hazira, Gujarat, that can handle 5 million tonnes per year, as well as a modest network of petrol pumps.

It is now eyeing the LNG market for trucks and buses as a potential growth area.Shell Energy India’s country head, Nakul Raheja, said that they are aiming to construct their own LNG facilities and retail terminals in the country.

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They are working on their own expansion plans in this place, and if everything goes according to plan, they should be able to get the first site selling LNG as a transportation fuel to heavy duty vehicles in Gujarat by the end of this calendar year, and they will follow that up with another few sites next year, Nakul added.

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While the first location is likely to be an LNG major retailer, the company may think about putting the LNG refuelling station next to petrol pumps in the future.They will start with Gujarat, particularly the area around Hazira.

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Of course, a natural place to start is going to be Surat, and then logically extend into further Western India to commence with and work on plans further than that. He said that the company might have three to four sites in the next 12 to 18 months.

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The government is promoting LNG as a long-haul transportation fuel. In the following three years, it plans to open 50 sites in Gujarat, Karnataka, Andhra Pradesh, Kerala, Rajasthan, and Tamil Nadu, for a total of 1,000 outlets.

LNG, which is natural gas that has been supercooled and turned into a liquid, has much lower emission levels than diesel. In addition to natural benefits, it is also less expensive on long-haul routes.