"Ministry of petroleum and natural gas can play a vital and leading role in provisioning for the availability of LNG at stable/predictable prices; availability of sufficient HDVs/trucks; and availability of sufficient LNG dispensing stations," the ministry said in the draft scheme for promotion of LNG in transport.
Predictable LNG prices can be ensured "by allocating 0.5 million metric standard cubic meters a day (mmscmd) of domestic natural gas produced from new well or well intervention for an initial period of three years," it said.
The volume of 0.5 mmscmd of gas should be sufficient for 50,000 trucks over the next 2-3 years, it said. The draft has also proposed setting up small-scale liquefaction plants in off-grid areas to convert biogas into bio-LNG for use in transport.
The ministry has mandated state-run oil companies to set up 49 LNG dispensing stations. It may advise "oil marketing companies to incentivise fleet owners for conversion of diesel trucks to LNG fuel trucks".
The oil ministry may also consider developing the Delhi-Mumbai expressway as a pilot LNG highway and request the ministry of road transport and highways to exempt LNG-powered HDVs from toll tax on that route. "This, in turn, shall reduce the operating cost of LNG HDVs and propel faster adoption," the ministry said.
LNG has a 24% lower emission factor than diesel. Medium and HCVs consume 40% of all diesel in the country. As of March 31, 2020, there were about 5.8 million trucks and lorries and 1.6 million multi-axle articulated vehicles registered in India.
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