In a strategic move aimed at accelerating India’s transition toward cleaner energy, Mahanagar Gas Limited (MGL) and Oil India Limited (OIL) have signed a Memorandum of Understanding (MoU) to collaborate across the Liquefied Natural Gas (LNG) value chain and explore emerging opportunities in the clean energy space.
The MoU was signed on October 6, 2025, by senior executives from both companies VP (BD, BIS, Commercial & STU), MGL and ED (BD), OIL in the presence of MGL Managing Director Ashu Shinghal and OIL Directors (Operations) and (HR).
Mahanagar Gas Limited, one of India’s leading City Gas Distribution (CGD) companies, has in recent years expanded its footprint into the LNG sector, including the operation of LNG retail stations. The company has been actively diversifying its portfolio with a strong focus on sustainable and clean energy initiatives.
Oil India Limited, a Maharatna public sector enterprise, brings its vast expertise in hydrocarbon exploration, production, and development to the partnership. The company has outlined an ambitious plan to ramp up natural gas production and pursue projects that align with India’s clean energy goals.
Speaking at the signing ceremony, Ashu Shinghal, Managing Director of MGL, emphasised the environmental and industrial significance of the partnership. “This collaboration with OIL will help accelerate adoption of cleaner fuels in the long-haul transport sector. It will enable corporates to move towards greener logistics solutions and contribute to reducing the overall pollution footprint,” he said.
Echoing similar sentiments, Trailukya Borgohain, Director (Operations) at OIL, noted that the partnership will focus on technical and commercial viability studies for LNG applications in heavy-duty transport. “The collaboration will focus on assessing technical and commercial viability of LNG in the heavy-duty transport segment and on exploring projects in clean energy. Our objective is to take feasible pilots to commercial scale,” he stated.
The agreement underscores the shared vision of both organisations to promote low-carbon mobility solutions and to advance India’s clean energy ecosystem. By leveraging their complementary strengths, MGL’s city gas distribution network and LNG retailing experience, and OIL’s upstream and midstream capabilities, the two companies aim to build a robust framework for LNG and clean energy growth in the country.
With India’s commitment to achieving net-zero emissions by 2070, such collaborations between public and private sector energy players are expected to play a pivotal role in driving energy diversification, reducing carbon intensity and fostering sustainable industrial growth.
