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AVG Logistics, Baidyanath LNG Join Hands to Expand LNG-Based Transport Solutions

AVG Logistics has entered into a Memorandum of Understanding (MoU) with Baidyanath LNG to promote the use of liquefied natural gas (LNG) as a cleaner and more economical fuel for transportation across major industrial logistics segments in India.

The partnership aims to accelerate the deployment of LNG-powered transport solutions across high-volume sectors such as steel and metals, fast-moving consumer goods (FMCG), cement, and other industrial supply chains.

As part of the collaboration, AVG Logistics will utilise its extensive logistics network and strong customer base to introduce LNG-powered fleets, while Baidyanath LNG will provide access to LNG vehicles, refuelling infrastructure, and technical support. The two companies will also work together to develop tailored LNG-based transportation solutions suited to industry-specific requirements.

Under the agreement, Baidyanath LNG will support AVG by offering dedicated LNG-powered fleets and facilitating access to its LNG filling stations. AVG, in turn, will actively promote LNG as a cleaner alternative fuel by integrating LNG-based logistics services into its existing and future offerings for customers across multiple industries.

Commenting on the development, Sanjay Gupta, Managing Director and CEO of AVG Logistics, said the initiative aligns with the company’s focus on sustainable and profitable growth. He noted that the adoption of LNG-powered fleets is expected to improve operational efficiency, reduce fuel costs, and support margin expansion over the medium to long term. Gupta added that offering cost-effective and environmentally responsible transport solutions would enhance fleet utilisation, strengthen market competitiveness, and contribute positively to both revenue and profitability.

Vaddadi Subbarao, Director at Baidyanath LNG, said the agreement would support the development of LNG corridors in India by strengthening the required ecosystem. He added that the partnership would help expand the company’s LNG station network and ensure uninterrupted LNG supply along key trucking routes, supporting India’s transition towards sustainable heavy-duty transportation. Subbarao also emphasised the importance of reducing emissions from heavy trucking, given its significant contribution to harmful pollutants.

The MoU aligns with India’s broader clean energy objectives and AVG Logistics’ commitment to operational efficiency and environmental responsibility. The agreement will remain valid for an initial period of five years, during which both companies will jointly explore market opportunities, undertake sector-focused outreach, and support training initiatives related to LNG fleet operations.