$1.35 billion LNG retail push as India aims to reduce diesel use

Indian companies will spend $1.35 billion over three years on 1,000 liquefied natural gas (LNG) stations along main roads and industrial corridors and in mining areas to cut diesel consumption, according to oil minister Dharmendra Pradhan.

Pradhan said: “Even if the LNG vehicle segment achieves 10 percent market share in a fleet of 10 million trucks, it will have a positive impact on reducing emissions and substituting crude,” at a foundation-laying ceremony for 50 LNG stations.

Use of LNG in heavy vehicles will cut fuel costs by 40 percent compared with diesel and help contain inflation, he added, and urged automobile makers to look at producing LNG-compatible vehicles.

Companies will set up LNG fuelling stations along a 6,000 km network of highways linking the four main metropolitan areas.

Indian companies are spending billions of dollars to build gas infrastructure including pipelines and import terminals to raise share of gas in energy mix to 15 percent by 2030, up from the current 6.2 percent.

For more information visit www.india.gov.in