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India's LNG industry seeks government support amid rising diesel costs

Created at 1 Jun · 11:36 AM1 source↑ Market-relevant
IN SHORT

India's LNG distribution industry is urging the government to back LNG infrastructure development, citing lower costs compared to surging diesel prices. Executives highlighted that LNG is 42% cheaper for the freight industry, but adoption has been limited by infrastructure availability rather than economics.

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Key Numbers

42%LNG cost savings compared to diesel for freight

Who's Involved

Deepak Acharya
Managing Director at cryogenic company, commenting on LNG adoption constraints
Indian LNG distribution industry
Advocating for government support and infrastructure buildout

↳ Why This Matters

Rising diesel costs are impacting India's freight industry, prompting a push for alternative fuels like Liquefied Natural Gas (LNG). While LNG offers significant cost savings, its widespread adoption has been hampered by a lack of supporting infrastructure. The industry is seeking government backing to overcome this hurdle and capitalize on the economic advantages of LNG.

Key facts

  • India's LNG distribution industry is requesting government support for LNG infrastructure.
  • LNG is currently 42% cheaper than diesel for the freight industry in India.
  • Industry executives note that infrastructure availability, not economics, has historically constrained LNG adoption.
  • India currently has government support for ethanol infrastructure, but not for LNG.

Rising diesel costs are impacting India's freight industry, prompting a push for alternative fuels like Liquefied Natural Gas (LNG). While LNG offers significant cost savings, its widespread adoption has been hampered by a lack of supporting infrastructure. The industry is seeking government backing to overcome this hurdle and capitalize on the economic advantages of LNG.

Frequently asked questions

The industry is seeking support due to the significant cost savings LNG offers over surging diesel prices for freight, but needs government backing for infrastructure development.

LNG is reported to be 42% cheaper than diesel for the freight industry.

Industry executives state that the primary constraint has been the availability of infrastructure, rather than the economics of the fuel itself.

What Happens Next

01Government consideration of support for LNG infrastructure buildout.

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How It Developed

1 Jun · 11:30 AM
India's LNG industry seeks government backing for infrastructure development due to LNG's 42% cost advantage over diesel for freight.
OilPrice.com Updates daily via PiQSuite

Sources

T1
India's LNG Industry Pushes for Government Backing as Diesel Costs Surgem.piqsuite.com

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