With quicker adoption of liquified natural gas (LNG) becoming a centre
point in government’s gas policy and to control greenhouse gas (GHG) emissions,
leading city gas distributor (CGD) Adani Total Gas Ltd has identified this
super-chilled fuel to fuel its growth.
Adani Total Gas Ltd (ATGL) is aiming to increase the adoption of LNG as the
primary fuel for long-haul commercial vehicles, replacing diesel, through an
ecosystem approach, a senior company official said.
This includes strategic tie-ups with various stakeholders like auto
ancillaries, Original Equipment Manufacturers (OEMs), fleet operators, end-use
industry, and retrofitment players to advocate for quicker adoption of the
fuel.
“The biggest challenge of LNG is
distribution…“To address this, we are engaging with all stakeholders in the
ecosystem for a quicker adoption of this green fuel,” said Suresh P Manglani,
CEO, ATGL.
Over the last two
months, ATGL has signed MoUs with alternative fuel system
manufacturer Shigan, cryogenic liquid storage, distribution and re-gas
solutions provider INOX CVA, and Adani Cement, which engages a large number of
fleets for logistics. The company said over the coming months, more such
partnerships will be stitched up.
ATGL, which already has a network of over 500 CNG retail outlets
nationwide, plans to set up 50 LNG dispensing stations across national highways
over the next couple of years, and is already in the process of setting up five
stations in the vicinity of Adani portfolio companies in cement and mining
sector to make their logistics greener, he said. The first LNG station is expected to be commissioned at Dahej in
Gujarat by the first quarter of the next financial year, he said.
Of India’s total diesel consumption of around 80 million tonnes in a
year, roughly 50 million tonnes is consumed by the medium and heavy commercial
vehicle (M&HCV) segment. Given fuel
accounts for the lion’s share – up to 60% – of a truck operator’s cost, LNG
offers about a 20 % cost advantage over diesel.
.“A fully-loaded truck with a tankful of LNG can cover 600-700 kms,
similar to diesel. Hence the ‘range anxiety’ can be overcome by placing filling
stations every 400 kms on highways, which is our plan,” Manglani said.
A report recently published by the Energy Transition Advisory Committee,
formed by the Ministry of Petroleum and Natural Gas, has strongly recommended LNG as a transition fuel for replacing
diesel over the next 10 to 15 years. LNG has higher calorific value and
burns much cleaner than diesel. Using LNG results in reduction of CO2 emission
by 30 %, particulate matter (PM) by 80 %, and SOx by 100 %.
“What differentiates us is as a CGD (city gas distribution) entity, we
have the required expertise in handling LNG, which has very specialized
storage, transportation and dispensing requirements. “And unlike for PNG and CNG, which require us to operate in our license
areas only, LNG is license free, which means we can set up dispensing units
anywhere we want,” he added.