The Indian government is targeting a significant shift toward liquefied natural gas (LNG) to
fuel one-third of the country’s long-haul heavy-duty vehicle (HDV) fleet within the next 5-7
years. A draft proposal from the Ministry of Petroleum and Natural Gas outlines the measures
required to facilitate this transition, including the allocation of domestic gas for LNG supply.
As per the ministry’s proposal, 0.5 million metric standard cubic meters per day (mmscmd) of
domestic natural gas may be earmarked for an initial period of three years to ensure steady
and predictable LNG pricing. This allocation is projected to power 50,000 trucks over the
next 2-3 years.
To support this transition further, the ministry has suggested establishing small-scale
liquefaction plants in remote areas to convert biogas into bio-LNG. This initiative aims to
increase the availability of bio-LNG for transportation.
The oil ministry has already instructed state-run oil companies to establish 49 LNG
dispensing stations across the country. Additionally, oil marketing companies might offer
incentives to fleet owners for converting diesel trucks to LNG-powered vehicles, thus
speeding up the transition to cleaner fuel.
One pilot initiative being considered is to develop the Delhi-Mumbai expressway as an LNG
highway. The proposal includes exempting LNG-powered trucks from toll fees on this route,
which could significantly lower operating costs and encourage quicker adoption.
With LNG offering a 24% lower emission factor compared to diesel, this transition supports
India’s sustainability objectives. Currently, medium and heavy commercial vehicles account
for around 40% of all diesel consumption in the country. By promoting LNG adoption, India
aims to reduce its carbon footprint and improve the efficiency of its transportation sector.
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