**Summary:**
The Ministry of Petroleum and Natural Gas is actively promoting the use of Liquefied Natural Gas (LNG) to support a gas-based economy in India. Key initiatives include allowing 100% Foreign Direct Investment (FDI) under the automatic route for LNG infrastructure development, including terminals, and utilizing the Open General Licensing (OGL) category for LNG imports. As of August 7, 2025, India has eight operational LNG regasification terminals with a combined capacity of approximately 52.7 million Metric Tonnes Per Annum (MMTPA).
The government is also driving the establishment of LNG retail stations across key transportation routes (Golden Quadrilateral, National Highways, East-West & North-South Highways) and major mining clusters. To date, 13 LNG retail stations have been commissioned by state-owned Oil and Gas Companies, with an additional 16 stations operated by private entities.
To boost LNG as a transport fuel, the government has recognized LNG as a transport fuel and notified emission standards for LNG vehicles. Amendments to the Static and Mobile Pressure Vessels (Unfired) Amendment Rules, 2025, now permit LNG-fueled vehicles (spark ignition or compression ignition) to operate in hazardous areas and allow for LNG mobile dispensing in non-transport sectors like railways, mining, and waterways. The Petroleum and Natural Gas Regulatory Board (PNGRB) issued a notification in 2020 allowing entities to establish LNG Retail Outlets (RO) irrespective of PNGRB's CGD authorization, specifically for dispensing LNG in liquid state to the transport sector.
This information was provided by the Minister of State in the Ministry of Petroleum and Natural Gas, Shri Suresh Gopi, in a written reply in Lok Sabha.
Key Entities Referenced
Ministry of Petroleum Natural Gas: The Indian government ministry responsible for petroleum and natural gas.
Liquefied Natural Gas LNG: Natural gas that has been converted to liquid form for ease of storage or transport.
Foreign Direct Investment FDI: An investment made by a firm or individual in one country into business interests located in another country.
Golden Quadrilateral GQ: A national highway network connecting major industrial, agricultural and cultural centres of India.
National Highways: The network of trunk roads owned by the Ministry of Road Transport and Highways.
Static and Mobile Pressure vessels Unfired Amendment Rules, 2025: Amended rules to allow LNG fuelled vehicles to operate in hazardous areas and LNG mobile dispensing in nontransport sectors
Petroleum and Natural Gas Regulatory Board PNGRB: A regulatory body in India that oversees the downstream petroleum and natural gas sector.
SHRI SURESH GOPI: MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
Ministry of Petroleum & Natural Gas
Government Boosts LNG Use with 100% FDI, New
Stations, and Policy Reforms
Posted On: 07 AUG 2025 5:20PM by PIB Delhi
Demand of Natural Gas in the country is met through domestic production of Natural gas as well as import of
Liquefied Natural Gas (LNG). Government have taken various steps to support growth of a gas-based
economy which includes augmenting the availability of LNG for various sectors. This, inter-alia, includes
permitting 100% Foreign Direct Investment (FDI) under 100% automatic route for establishment of LNG
infrastructure including LNG terminals, Open General Licensing (OGL) category for LNG imports, etc. As on
date, eight (8) LNG regasification terminals are operational with capacity of about 52.7 million Metric Tonnes
Per Annum (MMTPA).
Government have been driving the initiative of setting up of LNG stations across the Golden Quadrilateral
(GQ), National Highways, East-West Highway, North-South Highway and major Mining clusters in India. 13
LNG retail stations have so far been commissioned by State owned Oil and Gas Companies. Further, 16 LNG
retail stations owned by Private entities are also operational.
The steps taken to boost the usage of LNG as a transport fuel are as follows: LNG has been recognized as
Transport Fuel by Government and the emission standards for LNG vehicles have also been notified in this
regard.
Government has amended the Static and Mobile Pressure vessels (Unfired) (Amendment) Rules, 2025 to
allow LNG fuelled vehicles containing spark ignition engine or compression ignition type internal combustion
engine to operate in hazardous areas, LNG mobile dispensing in non-transport sectors such as railways,
mining, waterways, testing laboratories etc., among others.
Petroleum and Natural Gas Regulatory Board (PNGRB) has issued a notification in 2020 wherein it has
allowed an entity to set up LNG RO (Retail Outlet) irrespective of CGD authorization of PNGRB. (However,
this is applicable for the establishment and operation of LNG Stations for dispensing LNG in liquid state only
to the transport sector).
This information was given by the MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND
NATURAL GAS SHRI SURESH GOPI, in a written reply in Lok Sabha today.
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MONIKA
(Release ID: 2153679)