Global oil and petrochemical giant Shell has identified Gujarat as a key market for its future business and plans to set up a chain of retail fuel stations in the state.

Shell India Marketing Private Limited (SIMPL), a fully owned subsidiary of the Royal Dutch/Shell Group ('Shell'), Monday announced the launch of modern retail fuel stations in Ahmedabad, Vadodara and Rajkot.

The number will swell to 12 in the next two years, SIMPL managing director Surinderdeep Singh said here.

Shell entered the auto fuelling segment in India by setting up its first retail outlet in Bangalore in 2004. It has secured a marketing license from the central government to set up a fuel retail station network.

"Shell plans to go beyond the 12 fuel stations in Gujarat as the company considers the state as a very important market for its future business," Singh said.

He was confident that the first three fuel stations would spur customers in Gujarat to prefer Shell as the supplier of correct quantity and quality of fuel.

Singh said the modern fuel retail stations showcased the latest technology with built-in safety features. In the next phase the company could also be looking at LNG and CNG supplies, he added.