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LNG Poised To Disrupt Heavy Vehicle Fuel Market, Says IGL MD
Indraprastha Gas (IGL) is betting big on liquefied natural gas (LNG) as India’s next clean transport success story, drawing parallels with the transformation of compressed natural gas (CNG) over the last two decades. According to Kamal Kishor Chatiwal, Managing Director of IGL, even a modest shift from diesel to LNG in the trucking industry could trigger volumes rivalling a large share of today’s compressed natural gas (CNG) market.
If even 10 per cent of the diesel used in medium and heavy commercial vehicles shifts to LNG, it can create demand of around 11–12 million metric standard cubic meter per day (MMSCMD),” Chatiwal said at LNG India Summit 2025. “To put that in perspective, CNG sales today are about 26-27 MMSCMD. We are looking at LNG contributing 30–40 per cent of CNG’s current consumption.”
Chatiwal stressed that LNG’s adoption will be critical in meeting India’s goal of raising the share of natural gas in the energy mix from 6 per cent to 15 per cent. He said city gas distribution (CGD) companies like IGL will play a “major, major role” in that transformation.
Trucking And Logistics In Focus
India’s road freight sector is dominated by diesel-powered vehicles, consuming around 105 million litres annually in the MHCV category alone. Chatiwal underlined that converting just a fraction of this demand could unlock a transformative opportunity.He noted that LNG is well-suited for long-haul trucks and buses operating on India’s expanding network of expressways. “In the new India, where you have 1,000-kilometre-long super expressways like Delhi–Mumbai, LNG infrastructure can support efficient, cost-effective transport solutions,” he said.
Drawing parallels with CNG, which faced scepticism two decades ago but is now a mainstream fuel in passenger vehicles, Chatiwal expressed confidence that LNG can follow a similar growth trajectory. “Almost 40 per cent of new passenger vehicles in NCR and nearby areas today are CNG-run. We believe LNG’s story can be no different if the right infrastructure is put in place,” he observed.
Unlike CNG, which requires geographical authorisation to set up filling stations, LNG stations can be established anywhere in the country. This regulatory flexibility, he argued, makes LNG adoption easier, especially for large-scale commercial fleet.
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