LNG

Mahanagar Gas Limited (MGL), the growing Indian city-gas distribution company, has signed an agreement with Baidyanath LNG (BLNG) to give some momentum to the expansion of a liquefied natural gas fuel station network with a build-out starting from the western state of Maharashtra.

MGL, which is listed on the Bombay Stock Exchange, is the sole authorized distributor of compressed natural gas (CNG) and Pipeline Natural gas (PNG) in the city of Mumbai and its adjoining areas as well as in the city of Raigarh, located in the land-locked central Indian state of Chhattisgarh.

BLNG is an LNG fuel pioneer and opened India’s first LNG fuel station almost two years ago at Dighori and which was aimed at LNG-powered vehicles using the national highways around Nagpur, one of the main cities in Maharashtra.

Until the BLNG fuel station opened, the only LNG fuelling point were at India’s LNG import terminals where truck-loading stations are open to contracted customers only, though cannot supply random members of the public.

Infrastructure

“We are pleased to enter into this arrangement with BLNG for development of LNG infrastructure,” said Ashu Shinghal, Managing Director, of MGL.

“Both parties have their own set of skills and capabilities which can be harnessed to offer seamless solutions to the customers. MGL has always played a constructive role in the development of an environment which can facilitate faster adoption of cleaner fuel,” explained Shinghal.

MGL already has city-gas connectivity to approximately 2.07 million domestic households, which is a high figure for India, and operates about 300 filling stations mainly selling compressed natural gas (CNG).

The company additionally has more than 6,400 kilometres of pipelines and associated infrastructure.

BLNG Chief Executive Vaddadi Subbarao said he was delighted to enter into this agreement with MGL for the development of an LNG corridor to be initially focused on the Maharashtra region.

“This agreement provides us with an added impetus in our mission to create a wide network of these LNG stations across Maharashtra. We look forward to enabling India’s mission of decarbonizing heavy trucking by ensuring uninterrupted LNG supply on key trucking routes,” Subbarao explained.

The Baidyanath group, a private company, distributes medicines, food and cosmetics as the main part of company activities.

While its energy unit operates just two LNG fuel stations at the moment it plans to set up around 15 stations in the Vidarbha region of Maharashtra.

MGL in addition to being BSE-listed counts among its shareholders Gas Authority of India (GAIL) with a 32.5 percent stake and the government of the state of Maharashtra, which owns 10 percent of MGL.