Executive Summary:
This document addresses Lok Sabha Unstarred Question No. 3139 concerning the promotion of LNG in the transport sector, answered on August 7, 2025. It details government initiatives to increase LNG availability, the establishment of LNG filling stations, and policy measures to encourage LNG vehicle adoption. The document also provides data on LNG dispensing stations commissioned by state-run oil companies.
Key Points / Main Content:
LNG Availability and Infrastructure:
* The government supports a gas-based economy by increasing LNG availability through domestic production and imports.
* 100% Foreign Direct Investment (FDI) is permitted under the automatic route for LNG infrastructure development.
* LNG imports fall under the Open General Licensing (OGL) category.
* Eight LNG regasification terminals are operational, with a capacity of approximately 52.7 Million Metric Tonnes Per Annum (MMTPA).
* The government promotes LNG station establishment across major highways and mining clusters.
LNG Retail Stations:
* 13 LNG retail stations have been commissioned by State-owned Oil and Gas Companies.
* 16 LNG retail stations are owned by private entities and are operational.
Promotion of LNG as Transport Fuel:
* LNG is recognized as a transport fuel, and emission standards for LNG vehicles have been notified.
* The Static and Mobile Pressure Vessels (Unfired) Amendment Rules, 2025, allow LNG-fueled vehicles to operate in hazardous areas and enable LNG mobile dispensing in non-transport sectors.
* The Petroleum and Natural Gas Regulatory Board (PNGRB) allows entities to set up LNG Retail Outlets (RO) for dispensing LNG to the transport sector, irrespective of CGD authorization.
Impact Analysis:
State-Owned Oil and Gas Companies:
* Impact: Required to commission and operate LNG dispensing stations and contribute to the expansion of LNG infrastructure.
* Action Required: Continue commissioning and operating LNG dispensing stations for commercial transport vehicles.
Private Entities:
* Impact: Allowed to establish and operate LNG retail stations, contributing to the expansion of LNG infrastructure.
* Action Required: Continue operating and expanding LNG retail stations.
Transport Sector:
* Impact: Encouraged to adopt LNG-based vehicles through supportive policies and infrastructure.
* Action Required: Consider transitioning to LNG-based medium and heavy-duty vehicles.
Petroleum and Natural Gas Regulatory Board (PNGRB):
* Impact: Responsible for regulating the establishment and operation of LNG retail outlets.
* Action Required: Continue implementing the notification allowing entities to set up LNG Retail Outlets irrespective of CGD authorization.
Key Entities Referenced
Liquefied Natural Gas (LNG): A natural gas that has been cooled down to liquid form for ease of storage and transport, and is being promoted as a transport fuel.
Golden Quadrilateral Highway: A national highway network connecting major industrial, agricultural and cultural centres of India.
Petroleum and Natural Gas Regulatory Board (PNGRB): A statutory body in India responsible for regulating the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas.
Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
Open General Licensing (OGL): A license that allows the import of goods without any restrictions.
Static and Mobile Pressure vessels Unfired Amendment Rules, 2025: Rules amended to allow LNG fuelled vehicles to operate in hazardous areas, and LNG mobile dispensing in non-transport sectors.
SHRI SURESH GOPI: Minister of State in the Ministry of Petroleum and Natural Gas
Million Metric Tonnes Per Annum (MMTPA): A unit of measurement for the capacity of LNG regasification terminals.
LOK SABHA
UNSTARRED QUESTION No. 3139
TO BE ANSWERED ON 07TH AUGUST, 2025
PROMOTION OF LNG IN TRANSPORT SECTOR
3139. SHRI SASIKANTH SENTHIL:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) whether the Government has undertaken any initiatives since 2023 to augment the
production and availability of Liquefied Natural Gas (LNG) to meet the increasing demand in
the transport sector and if so, the details thereof;
(b) whether LNG filling stations have been established along the Golden Quadrilateral
Highway during 2022–2025 and if so, the details thereof along with the number of such
stations and their present operational status;
(c) whether any policy measures or incentives have been introduced to promote the adoption
of LNG-based medium and heavy-duty vehicles in place of conventional fossil fuel-based
transport and if so, the details thereof; and
(d) whether State-run oil companies have commissioned LNG dispensing stations for
commercial transport vehicles and if so, the details thereof along with the number of such
stations currently functional across the country?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेशगोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (d) 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, includespermitting 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 ofLNG 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 beencommissionedbyState 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:
i) LNG has been recognized as Transport Fuel by Government and the emission standards
for LNG vehicles have also been notified in this regard.
ii) 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.
iii) 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).
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