In the era of climate consciousness, the need for clean and sustainable energy sources has never been more urgent. As one of the world’s largest emitters of greenhouse gases, India has set a target to achieve net-zero emissions by 2070. To achieve this target, it plans to increase the share of natural gas in its energy mix from 6% to 15% by 2030. Additionally, it will have a third of its heavy-duty long-haul trucking fleet fuelled by liquefied natural gas (LNG) rather than diesel in the next few years to reduce pollution.
With industries and governments looking for ways to reduce carbon footprints and minimize the environmental impact of conventional fuels, Ultra Gas & Energy Ltd (UGEL) stays at the forefront in the green energy sector. Essar’s green tech company- UGEL, is transforming the Indian mobility landscape by offering eco-friendly, cost-effective energy solutions. The group is transforming clean energy marketing and distribution in India by setting up a Pan-India network of Green Fuel Hubs- LNG Outlets that will provide the closest access to a wide variety of clean fuels to both the industries & the transport sector. The group will build a network of 100 LNG hubs across the country, envisioning itself as the largest privately owned LNG.
Having overcome the overstated Essar insolvency issues, the Essar Group has shown its resilience and commitment to its vision of developing India’s largest LNG network.
LNG Market Size: A Growing Need for LNG Infrastructure
According to a report, India’s LNG Market was worth USD 8.9 billion in 2024 and is expected to reach USD 27.36 Billion by 2030, growing at a CAGR of 13.2% during the forecast period. This growth is driven by growing energy demand fuelled by economic growth and urbanization. India is seeking cleaner energy alternatives, with LNG being an attractive alternative due to its lower emissions than coal and oil.
Even the government has introduced several policies, such as the National Gas Grid project, supporting a transition to a “gas-based economy” by expanding infrastructure and offering tax incentives. Additionally, India’s commitment to reducing carbon emissions has tightened environmental regulations across industrial and transportation sectors, making LNG a preferred option for industries and businesses.
However, while India’s commitment to reducing carbon emissions is evident, the country still faces a significant infrastructure gap. The country currently has a limited number of LNG terminals, with a regasification capacity of 42 million tons per year (MTPA), which falls short of the projected demand of 70 MTPA by 2030.
At this time when the nation is struggling to meet its Net Zero target, Essar’s drive to strengthen its LNG network is anticipated to significantly improve air quality and promote sustainability. Key businesses like Essar Group, through its initiative in LNG retail via Ultra Gas & Retail, will help boost the usage of LNG through its pan-India network, for its cost-effectiveness and efficiency. LNG is being considered as the best alternative as it produces fewer carbon dioxide emissions, particulate matter, NOx and Sox..
UGEL to Develop India’s Largest Network of 100 LNG Outlets
UGEL’s core mission is to make sustainable and eco-friendly alternatives accessible to more industries, with a focus on the heavy automotive sector. The shift towards cleaner fuels is imperative in India, where the transportation industry remains one of the most significant contributors to carbon emissions. UGEL is addressing this challenge by building a nationwide network of LNG retail outlets. The company’s strategy is to supply LNG as a cleaner alternative to diesel, which has long been the primary fuel for heavy vehicles such as trucks, buses, and freight carriers. To establish a countrywide network of LNG Retail Outlets, primarily catering to the heavy automotive sector, UGEL is building India’s largest network of 100 LNG outlets.
LNG outlets will be loT-enabled for real-time fuel management and equipped to handle future technologies such as EV charging, hydrogen, bio-LNG, etc. With LNG offering incomparable mileage, the trucking industry will be vital in driving consumption. The fuel will have immense value for small and medium-scale industries, and the vast network of 100 outlets will meet the customer’s requirements. Currently, India has 13 LNG fuel hubs in total. UGEL, with operational hubs in Chennai and Anand, plans to expand its network to 100 LNG hubs across the country, envisioning itself as the largest privately owned LNG.
Essar is already in talks with leading companies like GAIL, Indian Oil, and other major LNG terminals to secure a steady supply of LNG for its expanding network of retail outlets. The company is actively progressing with upcoming LNG retail outlets across Tamil Nadu, Gujarat, Maharashtra, Punjab, Rajasthan, Orissa, etc. Through the network of LNG outlets, the group aims to provide a range of future-ready fuels, encompassing BioLNG, EV charging facilities, and CNG, strategically covering about 85% of the country’s freight corridors.
Essar Group: Driving Adoption through Innovative Initiatives
Among various Indian companies, Essar Group remains at the forefront of promoting the adoption of LNG initiatives. The group is actively minimizing carbon emissions in transportation by establishing a vast network of LNG refueling stations and introducing LNG-powered trucks. Through its Green Mobility initiative, Essar has achieved significant milestones in reducing carbon footprint of businesses by promoting cleaner logistics practices within the industrial sector. GreenLine Mobility has partnered with multiple companies, including Sterlite Copper, Flipkart, Hindalco Birla Copper, Nestle India, and Dalmia Cement, among many more, to introduce LNG-powered trucks as a significant solution for reducing their carbon footprints and promoting cleaner logistics practices.
Such partnerships encourage the shift towards this eco-friendly fuel. UGEL’s network will help improve LNG accessibility, further enabling businesses of all sizes to transition to eco-friendly fuels.
Read more: Essar Group’s Impact on People, Planet and Prosperity
Conclusion
India’s progress in establishing an LNG ecosystem relies on collaboration among the government and private players like the Essar Group. By focusing on infrastructure development and fostering innovation, Essar can establish the largest network of 100 LNG outlets, enabling India to transition to a greener, more sustainable energy future.
Through its commitment to LNG, the conglomerate not only drives growth having overcome setbacks of Essar insolvency, but also maximizes the Nation’s LNG potential as a more environmentally sustainable fuel option.
