GAIL, CONCOR ink MoU to explore adoption of LNG as alternative fuel | Stock Market News

GAIL, the country’s leading natural gas company, announced today that it has signed a Memorandum of Understanding (MoU) with Container Corporation of India (CONCOR) to explore the adoption of Liquefied Natural Gas (LNG) as an alternative fuel in the logistics sector.

“GAIL (India) Ltd. and CONCOR have signed a Memorandum of Understanding (MoU) to explore the adoption of Liquefied Natural Gas (LNG) as an alternative fuel for the logistics sector,” the company said in today’s regulatory filing.

GAIL commands a 66% market share in gas transmission and holds a gas trading share of over 54% in India. GAIL and its subsidiaries/JVs also have a formidable presence in city gas distribution. In the liquefied natural gas (LNG) market, GAIL maintains a significantly large portfolio. GAIL is also a pioneer in using gas for producing petrochemicals and operates an integrated 810 KTPA gas-based petrochemical complex in Uttar Pradesh, according to its website.

Container Corporation of India (CONCOR) is engaged in providing inland transportation of containers by rail. It also covers the management of ports and air cargo complexes, in addition to establishing cold chains.

Exploring LNG use in logistics fleets

The agreement aims to assess the feasibility of using LNG as fuel for CONCOR’s logistics fleet. This collaboration seeks to harness LNG’s advantages as a cleaner and more cost-effective alternative to diesel, which could result in reduced emissions and lower operational costs.

Shri Sanjay Kumar, Director (Marketing) of GAIL, emphasized that GAIL holds the largest LNG portfolio in the country, with contracts spanning multiple geographies worldwide, positioning it as a reliable LNG supplier.

“LNG as a transportation fuel is poised to be a game-changer for the transportation industry, and India is steadily gaining momentum in adopting this cleaner fuel alternative. This MoU reinforces a mutually beneficial partnership between leading conglomerates, fostering a more sustainable and environmentally friendly logistics framework.”

Commenting on the agreement, Shri Sanjay Swaroop, CMD of CONCOR, highlighted that the MoU is yet another step toward CONCOR’s commitment to providing sustainable logistics solutions. The company has already established an LNG station at MMLP Khatuwas and procured a large fleet of 130 LNG trailers, which has resulted in a reduction of carbon footprints in CONCOR’s day-to-day operations.

Shares of GAIL closed Friday’s session, April 25, lower at ₹187 apiece, down 3.36%, while those of Container Corporation of India also concluded the session with a cut of 4.08%, settling at 679 apiece.

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