Tata Motors and Ashok Leyland will join forces with Petronet LNG Ltd. (PLL) to introduce the use of liquefied natural gas (LNG) for running vehicles. PLL plans to retail LNG as it’s a cheaper and better alternative to the existing fuel. Compressed natural gas (CNG) is currently the cheapest available fuel.
PLL is in talks with a US-based firm which manufactures LNG kits. Similar to a CNG retailing outlet, PLL plans to set up a pilot storage hub in Gujarat. Currently, once the natural gas is imported into the country as LNG from the source country, PLL then regassifies it and thereafter sells it to other gas distributors in the country.
Commenting on the benefits of LNG as a clean burning alternative vehicle fuel, Mr. AK Balyan, Managing Director and CEO, Petronet, told the Business Standard that modern technology has made it simpler to start direct retailing of LNG. He also stated that his company has offered Tata Motors and Ashok Leyland to run a pilot project at Petronet’s facilities around Dahej in Gujarat. According to Mr. Balyan, the two companies are keen to take it forward and once an agreement is established, the trio will launch the pilot project within the year 2011.
