India plans Rs 10,000 crore investment in LNG stations

Shell LNG

India aims to have 1,000 Liquefied Natural Gas (LNG) stations across all major highways, industrial corridors and mining sectors in the country in a bid to increase availability of clean fuel.

“We are committed to strengthen the natural gas infrastructure to increase the availability and accessibility of clean fuels in the country,” said Dharmendra Pradhan, minister for Petroleum and Natural Gas.

These stations will be along all major highways and industrial centres in the next three years with an investment potential of about Rs 10,000 crore. India aims to convert about 10 percent of long-haul heavy-duty vehicles from alternated fuel to LNG.

Pradhan was laying the foundation stone via video-conference for India’s first-50 LNG fuel stations that are coming up across the golden quadrilateral and major national highways. He said that these are part of efforts to transform India into a gas-based economy.

Out of these 50 LNG stations, Indian Oil will set up 20 LNG Stations, while Bharat Petroleum and Hindustan Petroleum will set up 11 LNG stations each. The rest of the LNG fuel stations are being put up by Gujarat Gas and Joint Venture companies of GAIL and oil marketing companies.

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.

“Even if the LNG vehicle segment achieves 10 percent market share, it will have a positive impact on reducing emissions and substituting crude oil. LNG as a heavy vehicle fuel can also generate new gas demand, which will be significant in increasing the share of natural gas to 15 percent in our energy mix,” Pradhan added.