Now, anyone can set up an LNG station: Here’s how it will help push the cleaner, domestic fuel
The Petroleum and Natural Gas Regulatory Board (PNGRB) recently allowed any eligible entity to set up a liquefied natural gas (LNG) station anywhere in the country.
The decision would help give a push to promote LNG as an alternative fuel for trucks, helping reduce the country’s dependence on fossil fuels.
The Petroleum and Natural Gas Regulatory Board (PNGRB) recently allowed any eligible entity to set up a liquefied natural gas (LNG) station anywhere in the country.
The decision would help give a push to promote LNG as an alternative fuel for trucks, helping reduce the country’s dependence on fuels based on petroleum, much of which is imported.
The change in the PNGRB’s position came through a notification in which the regulator clarified that there was no provision under the PNGRB Act which states that the LNG station can only be set up by an entity which has been authorised.
“From the above-referred provisions, it is concluded that any entity can set up an LNG station in any geographical area (GA) or anywhere else,” PNGRB said.
The announcement comes months after the government said it would help set up LNG stations across the length of the golden quadrilateral, which connects the top metros of the country — even as it has drawn up an ambitious plan to help truckers adopt the fuel.
Thanks to its liquid form, LNG is quicker to fill than compressed natural gas (CNG) and has higher density, giving better mileage as well as better range (up to 900 kms between refills). It also works out to be cheaper to run than diesel, the predominant fuel for heavy vehicles.
But unlike CNG, which is easy to store and transport, LNG (which is nothing but natural gas cooled to -162 degrees), requires specialised cryogenic storage tanks, making it cost-effective for only heavy vehicles with large runs, rather than smaller ones such as cars.
Petronet LNG, the country’s biggest LNG infrastructure company, hailed the PNGRB’s decision to deregulate setting up of LNG stations across the country.
It added that it would help facilitate LNG dispensing infrastructure across the country on major national highways and invites fuel retailers, city gas distribution (CGD) entities or any interested parties to partner for this project.
Recently, Petronet launched its first commercially-registered LNG buses and LNG dispensing stations at its Dahej (Gujarat) and Kochi (Kerala) terminals, where it imports LNG.
Broking firm Morgan Stanley said setting up of fuel stations are key to developing the LNG transport ecosystem.
The PNGRB’s decision would increase competition for CGD players – companies that have the licence to distribute domestic piped as well as automotive fuel gas in a particular region.
It will also push fuel retailers such as Indian Oil and BPCL include LNG fueling points in their plans to upgrade their fuel pump network and roll them out along with electric vehicle charging stations.
Analysts expect states such as Gujarat, Kerala, Maharashtra and Tamil Nadu, which have access to LNG import facilities to see greater rollout of LNG stations to begin with.
India consumed 148 MMSCMD of natural gas in FY19, nearly half of which was imported, according to PPAC. Of this CGDs consumed 25.27 units, while fertiliser and power companies used 41 and 33 units, respectively, with other industries accounting for the rest.
