But IGL prefers LNG fuel stations
Indraprastha Gas (IGL) plans to add 100 LNG fuel stations across India in five years.
During a quarterly financial results call on July 26 (2024), IGL managing director Kamal Kishore Chatiwal stressed the plans are part of the company’s corporate growth strategy to meet the emerging challenge of electric vehicles. Chatiwal said IGL plans to set up five or six LNG stations in the 2024-25 fiscal including one exclusive station for trucks of state-owned Container Corporation (CONCOR).
IGL has a MoU with CONCOR to convert their 60 fuel stations to LNG across India. He added that eight or ten of the new LNG stations will be within the areas licensed to IGL, and the rest will be across India because LNG stations can be set up even in areas licensed to other CGD operators.
Chatiwal continued that IGL now has one LNG station operational at Ajmer in Rajasthan, along a highway where it is selling 4000 to 5000-kg/day. "That’s a good number," he commented.
"And, in case five to six more (LNG stations) come up, they will be equivalent to the other large CNG stations that we have." While CNG attracts excise (tax), LNG doesn’t.
But as the selling price of both is almost the same, margins are better in LNG, especially near LNG terminal locations, stressed Chatiwal. LNG sales from these upcoming 100 stations will likely contribute 20% to 25% of IGL’s gas sales volumes because sales from each LNG station will be higher than from each CNG station.
Each CNG station sells about 6000-kg/day, while each LNG station sells an average of 10,000-kg/day. By the end of March 31 (2025), Chatiwal expects IGL to be selling 9.5m cm/d through its steel pipeline network of more than 2100-km, plastic pipeline network of 24,500-km and more than 880 CNG stations in Delhi and other areas.
IGL supplies gas to over 2.7m households, 5000 factories, 6100 businesses and 2m vehicles.