ExxonMobil-IndianOil pact will address consumers not served by pipelines
The agreement between ExxonMobil, IndianOil and Chart Industries, to develop ‘virtual pipelines’ in India, is aimed at meeting the natural gas demand from consumers not connected by existing pipeline networks.
On Monday, ExxonMobil India LNG signed a letter of cooperation (LoC) with Indian Oil Corporation and Chart Industries to establish a system of transportation infrastructure to expand gas access in India. These ‘virtual pipeline systems’ will deliver LNG by road, rail and waterways to areas not connected by physical pipelines, the companies said.
Focus area
“Consumers currently relying on naphtha and fuel oil will be on the cross-hairs of this agreement on account of the cost economics,” said Sumit Pokharna, Research Analyst – Oil and Gas Sector and Vice-President, Kotak Securities.
