Spacenet and Modern Fuel Technologies to Launch Nationwide LNG Project Venture
Spacenet Enterprises India Ltd, a company listed on the NSE, and Modern Fuel Technologies, a prominent Russian firm, are excited to announce a joint venture focused on implementing Liquefied Natural Gas (LNG) projects throughout India. As India becomes one of the world's fastest-growing economies, poised to rank among the top three economic powers in the next 10-15 years, the demand for energy is expected to soar. This growth is accompanied by a significant shift towards clean energy, with high-polluting sectors transitioning to natural gas. The proposed joint venture is strategically positioned to capitalize on this trend by developing LNG infrastructure across the nation.
Prakash Dasigi, Executive Director of Spacenet Enterprises, and Aleksander Sorokin, General Director of Modern Gas Technologies, expressed the optimism about this venture. "This partnership will be a significant step towards enhancing India's LNG infrastructure and promoting cleaner energy solutions," said Dasigi. Sorokin added, "Our combined expertise will drive the development of modern LNG solutions across various sectors in India".
The shift towards natural gas as an alternative fuel for automobiles 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, LNG serves as a crucial 'feedstock' for low-carbon hydrogen, supporting the emerging hydrogen economy.
The project will also focus on retrofitting heavy commercial vehicles (HCVs) to use LNG, enhancing energy efficiency and reducing carbon emissions. According to the Shell LNG Outlook 2024, global LNG demand is projected to increase by over 50% by 2040, driven by industrial coal-to-gas switching in China and increased usage in South and Southeast Asia. In 2022, the total global LNG trade reached 402.8 million metric tonnes per annum (MMTPA), with India importing 20.79 MMTPA, representing 5% of the global LNG trade.
This joint venture underscores both companies' shared commitment to advancing energy, transport, and other economic sectors through modern LNG technologies and solutions. Financed by a major Russian bank, the project will see Spacenet holding a 15-25% stake, significantly enhancing the company's value. The collaboration aims to promote the growth of clean energy infrastructure and support India's transition to a more sustainable energy future.
