Clean fuel push: Oil cos to invest ₹10,000 cr to set up 1k LNG stations

To cut carbon emissions, oil companies in India will spend about ₹10,000 crore over the next three years to set up 1,000 liquefied natural gas (LNG) stations, Union petroleum minister Dharmendra Pradhan said on Thursday.

Diesel causes pollution and accounts for about two-fifth of India’s refined fuels consumption. It is used in buses, trucks and in the mining sector. LNG is a ‘clean fuel’ and an apt alternative to diesel. It helps cut green house gas emissions and is good for air.

“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,” Pradhan said at a foundation-laying ceremony for 50 LNG stations.

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As compared to diesel, LNG in heavy vehicles will cut fuel costs by 40%. Additionally, it will help contain inflation, said Pradhan, requesting automobile manufacturers to look at producing LNG-compatible vehicles.

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

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The LNG fuel stations will be set up along a 6,000-km network of highways linking the four main metropolitan areas. The transport sector can utilise up to 25 million cubic metres a day equivalent LNG in the initial phase, Pradhan said.

The use of LNG will also help India in meeting its commitment made under the Paris accord to cut greenhouse gas emission intensity of its gross domestic product by 33% to 35% below 2005 levels by 2030, he said.