India, home to some of the most polluted cities globally, is taking significant steps to reduce air pollution, one of which involves increasing the share of natural gas in its energy mix. The government, through a draft proposal from the oil and gas ministry, is working to promote LNG as a fuel for heavy-duty vehicles (HDVs).

While the introduction of CNG in transport, particularly in cars, buses, and auto rickshaws, has already helped reduce pollution, converting HDVs to CNG poses challenges due to their heavy payloads and the need for frequent refuelling. The ministry's proposal suggests that LNG, a cleaner fuel with better range, could be a viable alternative for HDVs in India.

As per Road Transport Year Book 2019-20, every year, about 350,000 medium and heavy commercial vehicles are sold in the country. As of March 2020, there were about 580,000 trucks and lorries and 1.6mn multi axle articulated vehicles registered in India.

The Indian transport sector accounts for 13.5% of the country’s energy-related carbon dioxide emissions, with HDVs contributing a significant share. The government believes that targeting emission reductions in this sector will have a major impact on overall emissions. According to the ministry, LNG has a 24% lower Emission Factor (gCO2/kg-fuel) than diesel, and it also produces lower emissions of harmful gases such as NOx and SOx.

The proposal aims to convert one-third of the existing long-haul HDVs to LNG and to ensure that one-third of future HDVs use LNG, potentially reducing vehicular pollution by a third. This conversion is expected to take 5-7 years, supported by the development of LNG infrastructure, including the establishment of LNG dispensing stations and encouraging vehicle manufacturers to produce LNG-powered trucks.

Indian oil and gas marketing companies (OGMCs) have been tasked with setting up 49 LNG stations in the first phase, with further expansion planned based on demand and the growth of the LNG market. The government aims to stabilise LNG prices and make the fuel accessible across the country, while incentivising fleet owners to convert diesel trucks to LNG.

The proposal also includes the establishment of small-scale LNG and bio-LNG facilities to serve areas not easily connected by pipelines. Additionally, the government may develop the Delhi-Mumbai expressway as a pilot LNG highway, with toll tax exemptions for LNG-powered HDVs. The ministry envisions that once the initial infrastructure is in place, the LNG ecosystem will become self-sustaining and expand without further government intervention.