India to cut down on diesel use with $1.35-billion LNG retail push

Minister for Petroleum and Natural Gas, Dharmendra Pradhan on Thursday said that Indian companies will spend almost Rs 100 billion ($1.35 billion) over three years on 1,000 liquefied natural gas (LNG) stations along main roads, industrial corridors and in mining areas to cut down on diesel consumption.

Diesel is widely used by buses, trucks, heavy-duty vehicles and in the mining sector and accounts for about two-fifths of India’s refined fuels consumption.


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

“Use of LNG in heavy-duty vehicles will reduce fuel costs by 40 percent if compared with diesel and help contain inflation,” he said while urging the automobile makers to look at producing LNG-compatible vehicles.

“LNG is suitable for long-haul trucks and buses as its higher energy density can help vehicles travel 700-900 kilometres with one fill compared with about 300 km for a diesel vehicle,” said V.K. Mishra, head of finance of Petronet LNG.

“Companies will set up LNG fuelling stations along with a 6,000 kilometres network of highways linking the four main metropolitan areas, “he said, adding that “transport sector can utilise up to 25 million cubic meters a day equivalent LNG in the initial phase.”