Indian city gas distribution company Adani Total Gas Ltd (ATGL) and INOX India Ltd have signed a mutual support agreement for a liquefied natural gas (LNG) partnership.
Under the agreement, the two companies have designated each other “preferred partner” status for the delivery of LNG and liquefied compressed natural gas (LCNG) equipment and services. ATGL and INOX will also explore collaboration opportunities for “strengthening the LNG ecosystem in the country”, they said in a joint news release.
ATGL will have certain inherent project level benefits, which include preferential treatment and access to advanced scheduling, and consideration for collaborative opportunities for establishing LNG/LCNG stations, LNG satellite stations, transitioning to LNG as a transport fuel, LNG logistics, as well as developing small-scale liquid hydrogen solutions for the industry, according to the release.
The agreement covers the role and obligations of both parties to leverage expertise in developing LNG infrastructure, including small-scale LNG plants, LNG stations, bringing economy of scale for conversion of heavy vehicles to LNG, developing best practices towards HSE, fuel efficiency, high quality conversion, and services.
“As our economy prepares to go [into] an overdrive, it is imperative that we also maintain a focus on ensuring that the transition happens in a sustainable manner”, Siddharth Jain, non-executive director for INOX, said. “We are, therefore, excited about our cooperation with ATGL, which would look to strengthen the LNG ecosystem and building and promoting LNG as a transport fuel. Our combined synergies, backed by expertise and scale of both the Parties will truly benefit the stakeholders in the economy in reducing emissions, and make significant contributions towards the green transition”.
“Air pollution and greenhouse gas (GHG) emissions are on the rise. With the ongoing rapid industrial growth and huge increase in heavy vehicles for transportations of goods, challenges will become even more formidable going forward”, ATGL Executive Director and CEO Suresh Manglani said. “This partnership with INOXCVA shall help ATGL in furthering phased transition of long-haul heavy vehicles, buses currently using HSD/diesel to LNG, thereby helping over 30% reduction in CO2 and GHG emissions. ATGL will also fast-track setting up of LNG stations across the country for boosting the confidence of fleet operators to embrace LNG as transportation fuel”.
Alternative Fuel Solutions
ATGL in January signed a memorandum of understanding (MoU) with Shigan Quantum Technologies Limited to explore collaboration opportunities for decarbonizing the supply chain.
Shigan manufactures alternative fuel system solutions for automotive original equipment manufacturers and the aftermarket. The primary focus will be on adopting natural gas for transportation and mining applications through sustainable solutions for fleet operators, including those deployed by Adani Group companies in sectors like cement, ports and logistics. The LNG retrofitment solution also will explore various applications like stationary engines, locomotives and marine equipment, according to a separate news release.
The two companies will also explore developing e-mobility based solutions for last mile delivery players and use cases for green hydrogen as fuel for ICE (internal combustion engine) vehicles.
“The signing of the MoU represents a collective vision for a greener, more sustainable future. We look forward to co-developing end-to-end solutions, which will support the transport and mining industries in their decarbonization journey and contribute to the net zero commitments of the country”, Manglani said.
“This MoU marks a significant step forward in our joint commitment to environmental responsibility. By transitioning to cleaner fuels, we aim to not only reduce our carbon footprint but also inspire positive change within industry”, Shigan Managing Director Shishir Agrawal said.
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