Indian Oil, Chart Industries to Market LNG in India
US-listed Chart Industries, manufacturer of engineered equipment for the industrial gas and energy industries, and state-owned Indian Oil Corporation (IOCL) March 18 signed a memorandum of understanding to promote the development of LNG market in India, Chart said March 19.
The companies will focus on modular liquefaction, regasification applications, LNG bunkering for barges and other marine applications, LNG & LCNG vehicle fuelling stations, alternative LNG mobile transportation such as railcars and ISO containers and LNG micro bulk systems.
The companies have entered into this MoU based on complementary synergies and mutually beneficial business objectives arising from the demand growth of natural gas in India, Chart said, adding that working together, both parties will explore opportunities for cooperation to promote natural gas and LNG development in multiple industrial and commercial sectors.
“The LNG opportunity in India is significant, as evidenced by the government’s commitment for clean fuel, and the double-digit LNG growth forecasts. We are excited about working with IOCL as it expands our reach into the LNG market in India and provides IOCL with speed to market as well as expanded service access,” said Jill Evanko, Chart’s CEO. “This opportunity originated from the recent acquisition of the VRV businesses now within our portfolio of offerings”. Italy-based VRV designs and manufactures pressure equipment serving the cryogenic and energy and petrochemical end markets.
IOCL’s first LNG import terminal was recently inaugurated by Indian prime minister Narendra Modi. The 5mn mt/yr LNG terminal is located at Kamarajar Port in Ennore in the southern state of Tamil Nadu. IOCL holds 95% stake in the Ennore LNG import terminal; Tamil Nadu Industrial Development Corporation has the remaining 5%. It is the first terminal on India's east coast.
Ennore terminal received its commissioning cargo February 25 from Qatar. The cargo was delivered onboard the vessel Golar Snow by Gunvor. Qatargas sold the cargo free on board (FOB) basis to the Swiss trader.