New stations, policy reforms, FDI boost gas-based economy in India: Minister

New Delhi, Aug 7 The government has taken various steps to support the growth of a gas-based economy, which include augmenting the availability of LNG for various sectors, open general licensing (OGL) and others, the Parliament was informed on Thursday.

"Demand of natural gas in the country is met through domestic production of natural gas as well as import of Liquefied Natural Gas (LNG)," Minister of State of Petroleum and Natural Gas, Suresh Gopi, said in a written reply in Lok Sabha.

Eight LNG regasification terminals are operational with a capacity of about 52.7 million metric tonnes per annum (MMTPA) as of the day of reply, the minister said.

The government have been driving the initiative of setting up LNG stations across the Golden Quadrilateral (GQ), the National Highways, the East-West Highway, the 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 Minister stated.

The steps taken to boost the usage of LNG as a transport fuel are as follows: LNG has been recognised as a transport fuel by the government, and the emission standards for LNG vehicles have also been notified in this regard.

The 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, the minister said.

The Petroleum and Natural Gas Regulatory Board (PNGRB) issued a notification in 2020, wherein it allowed an entity to set up an LNG RO (Retail Outlet) irrespective of CGD authorisation of the PNGRB.

However, this is applicable for the establishment and operation of LNG Stations for dispensing LNG in a liquid state only to the transport sector, the minister highlighted.

According to the minister, allowing 100 per cent FDI under the 100 per cent automatic route for the establishment of LNG infrastructure, including LNG terminals, and the OGL category for LNG imports, are playing a pivotal role in creating a gas-based economy.

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