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India’s CNG infra development in high gear
India’s auto industry is about to see a big increase in the use of compressed natural gas (CNG) over the next three to four years. One of the reasons for this optimism is the infrastructure of the city gas distribution (CGD) network that has reached over 88 percent of the country’s land mass. In terms of reach, it is equivalent to about 98 percent of the population, according to government statistics.
At the same time, the government has a goal to bump up the number of CNG stations from 6,000 to 17,700 by 2030. To further bolster this momentum, the government recently launched the 12th CGD bidding round in early October, aiming to bridge any remaining gaps in the gas infrastructure.
Where does it come from?
India obtains its CNG from a combination of sources. Some of it is produced within the country, while the rest is imported. Roughly 35-40 percent of the natural gas used for CNG production comes from domestic sources. The remaining is imported in the form of liquefied natural gas (LNG) from different countries.
For clarity, LNG, which is in a supercooled liquid state, is heated to convert it back into its natural gaseous form. The regasified (process of converting liquefied natural gas (LNG) at −162 °C (−260 °F) temperature back to natural gas at atmospheric temperature) natural gas is then compressed at a higher pressure, using specialised compressors, reducing its volume and making it suitable for storage and transportation as CNG.
The country is also exploring other ways to produce CNG. For example, there are special plants called bio-CNG plants that create renewable CNG from agricultural waste. These plants help produce CNG in an environmentally friendly manner.
India produced about 34,450 million standard cubic metres (MMSCM) of natural gas during the fiscal year 2022–2023, according to data released by the Ministry of Petroleum and Natural Gas. However, the total consumption of natural gas in the country was much higher, reaching about 60,311 MMSCM during the same period. To meet the demand, India imported approximately 26,647 MMSCM of LNG from other countries. The import bills for LNG amounted to around US$ 17.9 billion during that time.
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