Spacenet’ Enterprises India Ltd and Modern Fuel Technologies enter into joint venture to implement nationwide LNG project

PR Distribution in India

Hyderabad (Telangana) (India), August 2: Spacenet Enterprises India Ltd, an NSE listed company (Symbol-SPCNET) and Modern Fuel Technologies, a leading Russian company, are pleased to announce the formation of a joint venture company to implement Liquefied Natural Gas (LNG) projects across India.

As India becomes one of the fastest growing economies in the world and is poised to become one of the top three economic powers in the next 10-15 years, energy demand is set to grow exponentially. This growth is linked to a significant shift towards clean energy, driven by highly polluting sectors switching to natural gas. This joint venture, as proposed, aims to capitalize on this trend by rolling out LNG infrastructure across the country.

Project phases:

* Phase 1 (FY 2025-2027): Establishment of 20 LNG stations and fuel retail outlets.

* Stage 2: expansion to 180 LNG gas stations and fuel retail outlets across the country.

Prakash Dasigi, Executive Director of Spacenet Enterprises and Alexander Sorokin, CEO of Modern Gas Technologies, expressed optimism about the venture. “This partnership will be a significant step towards improving India’s LNG infrastructure and promoting cleaner energy solutions,” Dasigi said. Sorokin added, “Our combined experience will drive the development of modern LNG solutions across sectors in India.”

The shift to natural gas as an alternative fuel for cars is accelerating due to its higher efficiency and cleaner emissions compared to traditional fossil fuels. Natural gas is 30-40% more efficient and produces 40% less carbon dioxide (CO2) than coal and 30% less than oil. In the race to net zero emissions, LNG is serving as a key “feedstock” for low-carbon hydrogen, supporting the emerging hydrogen economy.

The project will also promote the “RETROFITTING” of heavy commercial vehicles (HCVs) to use LNG, contributing to energy efficiency and reducing carbon emissions. According to Shell LNG Outlook 2024, global LNG demand is set to increase by more than 50% by 2040, driven by the industry’s coal-to-gas shift in China and increased use in South and Southeast Asia.

In 2022, the total global LNG trade was 402.8 million metric tonnes per annum (MMTPA). India imported 20.79 MMTPA, which is 5% of the global LNG trade.

This joint venture underlines the joint commitment of both companies to the development of energy, transport and other sectors of the economy through the use of modern technologies and LNG solutions. The project is financed by a major Russian bank, and Spacenet will have a 15-25% stake, which will significantly increase the value of the company. The cooperation aims to support the development of clean energy infrastructure and support India’s transition to a more sustainable energy future.

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First published: August 2, 2024 | 18:30 IST