Oil Minister: Increased LNG consumption in India will reduce dependency on crude oil; To set 1000 LNG stations

The minister said, LNG stations at the distance of 200-300 km on golden quadrilateral, and within 3 years.

Nov 20, 2020 05:11 IST India Infoline News Service

Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Steel said that the Government will set up LNG stations at the distance of 200-300 km on golden quadrilateral, and within 3 years. The minister added, "we will have 1000 LNG stations on all major roads, industrial hubs and mining areas."

The minister expressed confidence that 10% of the trucks will adopt LNG as fuel.

According to Pradhan, LNG is going to be the fuel of the future for transport, and in this regard, retrofitting of the vehicles, as well as development by Original equipment manufacturers, is being undertaken. He states that LNG is not only almost 40% cheaper than diesel but also causes very less pollution.

Pradhan while laying the foundation stone for the first 50 LNG fueling stations on Thursday, said, 20-25 MMSCMD equivalent LNG will come to the country, and cheaper LNG is likely to be available in the global market. He explains that increased LNG consumption in the country will reduce the country’s dependence on crude oil.

For Heavy Duty vehicle segment, Pradhan said, is expected to grow significantly with increased highway development which is on-going across the country.LNG based truck operators can look forward to saving around Rs 2 Lakh per annum per truck which will result in the higher upfront cost of LNG trucks being paid back in around 3 – 4 years.

"LNG as heavy vehicle fuel segment can also provide around 20-25 MMSCMD of new gas demand by 2035, and will be an important contribution towards our vision of 15% share of Natural Gas in India’s energy mix," Pradhan added.

On the launch of 50 LNG stations, Pradhan explained that these fifty LNG stations will be set up and commissioned in partnership by country’s Oil & Gas majors such as IOCL, BPCL, HPCL, GAIL, PLL, Gujarat Gas and their Joint Venture Companies and subsidiaries. Out of these 50 LNG stations, IOCL will set up 20 LNG Station, while BPCL and HPCL will set up 11 each LNG station. These 50 LNG stations are being put up at the nation’s Golden quadrilateral and major National highways where LNG is to be made available for heavy vehicles and buses.

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