India Expands LNG Infra to Boost Gas-Based Economy

01 Aug 2025 CW Team

Government Expands LNG Infrastructure to Meet Growing Gas Demand

India meets its natural gas demand through a combination of domestic production and imports of Liquefied Natural Gas (LNG). To support the transition to a gas-based economy, the government has introduced several initiatives to increase LNG availability across various sectors.

These include permitting 100 per cent Foreign Direct Investment (FDI) under the automatic route for the development of LNG infrastructure, such as LNG terminals, and allowing LNG imports under the Open General Licence (OGL) category. At present, eight LNG regasification terminals are operational across the country, with a total capacity of approximately 52.7 million metric tonnes per annum (MMTPA).

The government is also promoting the development of LNG retail stations along major road networks, including the Golden Quadrilateral, North-South and East-West corridors, and in key mining regions. So far, 13 LNG retail stations have been commissioned by state-owned oil and gas companies, while 16 privately owned LNG stations are also operational.

To further boost LNG as a transport fuel, the government has formally recognised LNG for vehicular use and notified relevant emission standards. Amendments to the Static and Mobile Pressure Vessels (Unfired) Rules, 2025 now allow LNG-fuelled vehicles, whether spark or compression ignition, to operate in hazardous zones. These amendments also permit mobile LNG dispensing in sectors such as railways, mining, waterways, and laboratories.

Additionally, the Petroleum and Natural Gas Regulatory Board (PNGRB) issued a notification in 2020 allowing entities to establish LNG retail outlets (ROs) for dispensing LNG in liquid form for the transport sector, even without CGD (City Gas Distribution) authorisation.

This update was provided by Shri Suresh Gopi, Minister of State in the Ministry of Petroleum and Natural Gas, in a written reply to the Lok Sabha.

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