In a step towards achieving the government’s of India’s vision of developing India into a gas based economy, Indraprastha Gas Ltd (IGL), the largest CNG distribution company of India, yesterday entered into a MoU with Petronet LNG Ltd. (PLL), one of the fastest growing energy company in the LNG chain, for setting up of LNG infrastructure in India and abroad apart from working out the possibilities of bidding jointly in upcoming GA’s proposed by the Petroleum and Natural Gas Regulatory Board (PNGRB).
E.S. Ranganathan, Managing Director, IGL and Prabhat Singh, Managing Director, PLL signed the MoU in the presence of directors and senior officials of both companies. The MoU is aimed at synergising the efforts of two leading players in India’s energy sector to increase the reach of natural gas to maximum number of consumers in the country as well as overseas. In addition, it is also aimed at promoting the usage of LNG as an alternate fuel for motor vehicles in the country, especially heavy passenger and goods vehicles. As a part of the MoU, IGL and PLL have decided to work together for developing technology for LNG powered vehicles and infrastructure for storage and distribution of LNG and LCNG. The companies have also agreed to encourage vehicle owners to use LNG as another alternate fuel and joint foray in international markets for LNG and CGD networks.
The collaboration is based on the belief that in the transportation sector, the small scale liquefied natural gas (SSLNG) market will develop rapidly worldwide and will serve end users in areas not connected to the main pipeline infrastructure.
As a part of the MoU, IGL has agreed to own, design, construct, operate and maintain LNG & LCNG dispensing stations while partnering with PLL for development, procurement and promotion of LNG powered vehicles in areas of operations. IGL would also be looking at developing CGD network in other countries where PLL is foraying for LNG.
PLL on its part will supply and transport LNG to IGL at required LNG/LCNG dispensing locations, apart from assisting IGL in development of LNG and LCNG distribution centres, obtaining statutory approvals and pursuing vehicle owners/ operators to suitably modify/ design their vehicles to allow usage of LNG in motor vehicles and fill at IGL’s LNG Stations.
The companies have agreed to consider bidding jointly for developing CGD networks in the new areas proposed by PNGRB so that the end users in the areas not connected by pipeline network can get the option of using natural gas at their doorstep.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/01062018/igl-and-petronet-lng-sign-mou/