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Shell looks to meet growth in LNG trucking in Asia

Reuters  |  SINGAPORE 

By Jessica Jaganathan

(Reuters) - Royal Dutch Shell is planning to build a truck loading facility at its Hazira liquefied (LNG) terminal on as it looks to meet demand from industrial users, a top said on Friday.

The facility, which could be ready by next year, will be used to supply industrial demand through trucking in places that can't access supply from the grid, said Steve Hill, at

"It has a big potential growth ... in because is a big issue in India," he said at a in Singapore, referring to LNG being transported in trucks to industrial users.

"There hasn't been as much in place, but some of the import terminals are now putting the truck loading facilities in place so that's opening up that option."

B.V, a unit of Royal Dutch Shell Plc, holds a majority stake in the Terminal and Port in a venture with a unit of France's Total SA.

LNG trucking works well for locations off-grid, with and the two obvious markets, Hill said.

Gas hauled by trailers is seen growing to a tenth of China's total of around 240 billion cubic metres (bcm) in 2017, from 5.6 percent in 2014, but is a new development in


Shell expects LNG demand to rise again in this year as the world's second-largest importer of the super-chilled fuel extends a program to switch from coal to beyond the capital to large industrial cities, Hill said.

"The underlying policy that's driving this is basically community heating or small in-city industrial users switching (the) boilers from coal to gas," he said. "This is structural demand conversion."

The full effect of China's drive to switch factories and millions of homes from coal to gas to curb harmful emissions will be felt this year, he added.

India had the potential to be the next biggest growth market as it faced similar factors to China, Hill said.

"They are both countries with big populations, developing rapidly growing economies, (and) air quality challenges where gas has low penetration in the energy mix," he said.

"It's harder to predict the timing in India, but ultimately I'm quite confident we'll see rapid growth in in India."

(Reporting by Jessica Jaganathan; editing by Richard Pullin)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 09 2018. 13:01 IST