India aims to transition a third of its heavy-duty long-haul trucking fleet from diesel to liquefied natural gas (LNG) within five to seven years as part of efforts to reduce pollution, according to a draft policy from the federal oil ministry.
As one of the world’s largest greenhouse gas emitters, India has set a net zero target for 2070 and is seeking to increase the share of natural gas in its energy mix to 15% by 2030, up from the current 6%.
India has been slower than China in transitioning to LNG-powered trucks, where both electric vehicles and LNG trucks are already reducing oil demand.
Diesel remains the dominant fuel in India, the third-largest oil consumer globally.
Moving heavy-duty trucks to LNG could significantly lower domestic diesel consumption, freeing up more supply for international markets.
Although compressed natural gas is already used in some Indian cars and buses, the government believes LNG, with its longer range, is a more suitable option for long-haul trucking.
Indian oil and gas retailers are establishing 49 LNG stations in the first phase, with the government aiming to standardize LNG pricing nationwide, according to a recent draft policy.
Currently, state tax discrepancies result in varying LNG costs across the country.
The draft also states that the government will allocate 0.5 million cubic meters of gas per day to supply around 50,000 trucks for a period of two to three years.
Heavy-duty vehicles are responsible for most of the energy-related carbon dioxide emissions from India’s transport sector. As of March 31, 2020, India had 5.8 million trucks and lorries, along with 1.6 million multi-axle articulated vehicles registered.
“To reduce vehicular pollution in the transport sector, there is a need to promote LNG in heavy-duty vehicles, LNG has a 24 percent lower emission factor than diesel,” The draft policy notes.
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