India kicks off 1000 LNG stations development

India’s minister of petroleum and natural gas and steel, Dharmendra Pradhan laid the foundation stone for 50 LNG fueling stations.

The stations are part of the project that will see the construction of 1000 LNG stations across the golden quadrilateral and major National Highways.

This is part of a slew of initiatives of the ministry of petroleum and natural gas in realizing towards transforming India into a gas-based economy.

The government has identified LNG as a transport fuel due to the potential reducing pollution in transport.

Speaking on the occasion, Pradhan said that gas infrastructure is being set up in order to enable India’s transition to a gas-based economy. The infrastructure includes laying of pipelines, setting up of terminals, enhancing gas production, and the introduction of a simple and rational tax structure.

He said that LNG is the fuel of the future for transport. In this regard, retrofitting of the vehicles as well as development by original equipment manufacturers is being undertaken.

Pradhan noted that the government will set up LNG stations at a distance of 200-300 km on the golden quadrilateral, and within 3 years, India will have 1000 LNG stations on all major roads, industrial hubs and mining areas.

Minister expressed confidence that 10 per cent of the trucks will adopt LNG as fuel.

Pradhan also said that the government will continue to promote CNG vehicles, electric vehicles, Auto-LPG, but at the same time, LNG as long-haul fuel will be pushed.

He added that 20-25 mmscmd equivalent LNG will come to the country, and cheaper LNG is likely to be available in the global market. Increased LNG consumption in the country will reduce the country’s dependence on crude oil.

Tarun Kapoor, secretary of the ministry of petroleum and natural gas said that the government will promote LNG under its long-term plan. The first trial of the fuel was started in 2015, and it is now ready to take off on a commercial scale.

Country’s Oil & Gas majors such as IOCL, BPCL, HPCL, GAIL, PLL, Gujarat Gas and their joint venture companies and units will set up and commission the 50 LNG stations.

Out of these 50 facilities, IOCL will set up 20 LNG stations, while BPCL and HPCL will set up eleven LNG stations each.

Further, the heavy duty vehicle segment will grow significantly with increased highway development which is ongoing across the country.