Shell Energy India, a leading diversified energy company opened its first small-scale LNG supply infrastructure, a truck loading unit at its LNG terminal in Hazira, Surat. The virtual inauguration was done by the Union Minister for Petroleum, Natural Gas and Steel, Dharmendra Pradhan.
The company says this will now augment its natural gas supply offerings in India to include supply of LNG via trucks.
Speaking on the occasion, Minister Pradhan complimented Shell for their efforts in expanding the LNG infrastructure in the country. He said, “Clean, affordable and reliable energy is the need of the growing population and a key priority for the government of India. The government is committed to bring in a clean energy future whilst reducing the adverse impact on the environment. Innovative supply solutions like LNG by trucks will 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.”
Nakul Raheja, Country Head, Shell Energy India said: “In early 2019, we acquired additional 26% equity in the Hazira Terminal and created a fully-owned and integrated Shell value chain - supply from our global LNG portfolio, regasification at the Hazira facility, and downstream customer sales. This development extends our downstream customer offering and 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.”
The government of India is promoting natural gas through various policy and regulatory reforms towards making India a gas-based economy by increasing the share of gas in India’s primary energy mix to 15 percent. Shell Energy India says small-scale LNG can play an important role in realising this target as it enhances clean energy access across the country. 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 ecosystem for faster adoption of LNG as the preferred transportation fuel for M&HCVs especially for long-haul transport.
At present, Shell Energy India owns and operates a 5 mtpa LNG import terminal at Hazira, Gujarat. The terminal has been in operation since 2005 and received more than 600 LNG cargoes till date.