Updated March 30th, 2024 at 11:31 IST

India's LNG transport sector set for growth with 400 stations expected by CY30: Report

Analysts believe that favourable LNG pricing & infrastructure development will drive expansion of LNG retail market for heavy trucking vehicles in the country.

Reported by: Business Desk
LNG station | Image:Unsplash

India's LNG transport sector: A report from brokerage firm Emkay Global Financial Services forecasts notable growth potential in India's LNG transport sector by calendar year 2030 (CY30). 

The report suggests that the establishment of 400 LNG stations by this time could service approximately 50,000 trucks, with an estimated LNG demand of around 2.3mmtpa. 


Analysts believe that favourable LNG pricing and infrastructure development will drive the expansion of the LNG retail market for heavy trucking vehicles in the country.

Currently, there are about 4 million trucks and heavy vehicles operating in India, a portion of which could potentially transition to LNG. Emkay Global estimates that by CY30, 3-5 per cent of these vehicles could be converted to LNG, aligning with forecasts from Niti Aayog. 


Cost economics analysis indicates that LNG trucks offer a 10-20 per cent discount on Total Cost of Ownership (TCO) compared to diesel vehicles, making them economically viable options.

However, network development remains crucial for scaling up LNG adoption.


The report outlines the cost structure and operational considerations for LNG retail stations, stressing upon factors such as LNG pricing, operational expenses, and storage requirements. 

It suggests that LNG retail stations could offer a major competitive advantage over diesel, with the potential for lower total cost of ownership (TCO) and better mileage and maintenance. 


Each LNG retail station is expected to require one tank with a capacity of 56kl, with an estimated cost of around Rs 1 crore.

Overall, the brokerage indicates a promising outlook for the LNG transport sector in India, driven by favourable pricing dynamics and infrastructure development initiatives.


Published March 30th, 2024 at 11:25 IST