India Shifts Focus to LNG for Heavy-Duty Trucks Amid Diesel Dependency

NEW DELHI (Reuters)—According to a draft policy released by the federal oil ministry, India is set to transition one-third of its heavy-duty long-haul trucking fleet to liquefied natural gas (LNG) instead of diesel over the next five to seven years as part of a concerted effort to reduce pollution. This move aligns with India’s ambitious goal of achieving net zero greenhouse gas emissions by 2070.

Currently, natural gas accounts for about 6% of India’s energy mix, but the government aims to increase that share to 15% by 2030. As one of the world’s largest greenhouse gas emitters, India’s shift towards LNG is a significant step in combating climate change.

Despite this forward momentum, India has been relatively slow to embrace LNG-fueled trucks compared to China, where the adoption of electric vehicles and LNG-powered trucks is already influencing oil demand. Diesel remains the predominant fuel for refined products in India, which ranks as the third-largest oil importer and consumer globally.

The transition to LNG is expected to significantly reduce diesel consumption, making more refined products available internationally, the government is working towards standardizing LNG pricing across the country, addressing the current inconsistencies caused by varying state taxes. While some cars and buses in India currently utilize compressed natural gas, the government believes that LNG, with its superior range, is a more suitable alternative for long-haul trucking operations.

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To support this initiative, Indian oil and gas retailers are establishing 49 LNG dispensing stations in the initial rollout phase. Additionally, the government is working towards standardizing LNG pricing across the country, addressing the current inconsistencies caused by varying state taxes.

As part of the draft policy, the government has committed to allocating 0.5 million cubic meters of local gas per day over the next two to three years to cater to the needs of approximately 50,000 trucks. Heavy-duty vehicles are responsible for a significant portion of energy-related carbon dioxide emissions in India’s transportation sector. According to the draft, as of March 31, 2020, the country had registered 5.8 million trucks and lorries, along with 1.6 million multi-axle articulated vehicles.

The draft policy emphasizes the urgent need to promote LNG in heavy-duty vehicles to mitigate vehicular pollution. It notes that LNG has a 24% lower emission factor compared to diesel, making it a cleaner alternative for the environment. This strategic shift not only promotes cleaner air but also positions India towards a more sustainable energy future.