Adani Total Gas, Inox India Tie Up On LNG Infrastructure

Adani Total Gas Ltd. has announced a tie-up with Inox India Ltd. for delivery of liquified natural gas equipment and services in the country, including small-scale LNG plants and LNG stations.

Under the agreement, Adani Total Gas and Inox unit INOXCVA will mutually accord a "preferred partner" status for the delivery of LNG and LCNG equipment and service, the company said in a press release on Monday.

INOXCVA manufactures standard and customised cryogenic equipment, designed for the storage, distribution and transfer of cryogens, which includes LNG, among other industrial gases.

LNG is natural gas that has been cooled to a liquid state, at about -260° Fahrenheit, for shipping and storage. It is returned to its gaseous state and transported by pipeline to distribution companies, industrial consumers, and power plants in a process called 'regasification'.

Adani Total Gas said the tie-up will have certain inherent project-level benefits, which include access to advanced scheduling, 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.

"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," said Suresh P Manglani, executive director and chief executive officer of Adani Total Gas.

The Adani Group company will fast-track setting up of LNG stations across the country for boosting the confidence of fleet operators to embrace LNG as transportation fuel, he said.

Adani Total Gas is currently building its first LNG retail outlet in Dahej, Gujarat, which is expected to be commissioned by July 2024, with plans to set up station network at various strategic locations across India, according to an investor presentation.

Last month, the company also announced a collaboration with Gurugram-based Shigan Quantum Technologies Ltd. for retrofitting internal combustion engines to run on alternate fuels like compressed natural gas and LNG, with a primary focus on transportation and mining applications.

CNG and LNG have gained traction in India as an alternative fuel that is less polluting than diesel and petrol, as the country ramps up its energy transition process.

The Adani Group has pledged big investments in cleaner energy sources, including solar and wind.

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