UGEL to Expand LNG Network with Rs 900 Crore Investment

24 Sep 2025 CW Team

Ultra Gas & Energy Ltd (UGEL), part of the Essar group, will invest Rs 900 crore to expand its liquefied natural gas (LNG) retail network to 100 outlets across India, capitalising on the growing shift towards clean fuels in long-haul transportation.

The Mumbai-based company currently operates six stations along key freight corridors in Rajasthan, Gujarat, Maharashtra, Karnataka and Tamil Nadu. These outlets, located in industrial and logistics hubs, provide reliable access to LNG, a cleaner alternative to diesel.

As part of its energy transition strategy, UGEL is also investing in an LNG fleet for commercial vehicles. Its stations are designed as multi-fuel hubs, equipped for electric vehicle charging alongside LNG dispensing. Each outlet has a scalable capacity of 50 tonnes of LNG, capable of refuelling up to 600 trucks per month. On average, a single outlet can reduce carbon dioxide emissions by 66,000 tonnes annually, with the network collectively targeting around 1 million tonnes of reduction.

“Our retail outlets are built to do more than just dispense fuel; they are catalysts for a cleaner, smarter logistics future,” said Maqsood Shaikh, managing director and CEO of UGEL. Expansion is underway in Gujarat, Tamil Nadu, Maharashtra, Rajasthan, Haryana, Punjab, Karnataka, Odisha, Chhattisgarh and Jharkhand. UGEL has partnered with suppliers including IOCL, GAIL and HPCL to secure access to major LNG terminals, ensuring uninterrupted supply as the network grows.

The rollout positions UGEL at the forefront of India’s green mobility transition, accelerating the shift of commercial fleets from diesel to LNG.

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