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Indraprastha Gas Targets LNG Trucking Amid EV Shift. Here’s What Morgan Stanley Makes Of It
Indraprastha Gas Ltd.’s tie-up with Container Corp. to boost liquefied natural gas as trucking fuel will benefit the city gas distributor when it faces a risk from electric vehicle transition in Delhi, its largest market, according to Morgan Stanley. LNG trucking is a nascent market in India, unlike in China or the U.S., according to the international broking firm. While various stakeholders like
Retailers and Petronet LNG Ltd. have been attempting to develop the ecosystem, there has been limited success to date, it said. If successful, LNG trucking would provide a new demand growth area, which is not yet priced in by market, Morgan Stanley said. While Indraprastha does stand to benefit, oil retailers Bharat Petroleum Corp., Hindustan Petroleum Corp. and Indian Oil Corp. could be bigger beneficiaries.
Indraprastha Gas signed a memorandum of understanding for using LNG in trucks, which have 990-litre cryogenic gas tanks with a 1,400-kilometre mileage. The deal is an attempt to diversify from gas consumer base as EV adoption can hurt demand for the fuel.
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