India’s heavy-duty logistics sector is increasingly turning to liquefied natural gas (LNG) as transport operators and policymakers look for alternatives to diesel amid rising concerns over energy security and crude oil imports.
The transition comes as freight movement across the country continues to grow rapidly. India currently has nearly 4 million diesel-powered trucks transporting close to 70% of domestic cargo, making the sector one of the largest consumers of imported fossil fuels.
Against this backdrop, LNG is emerging as a practical near-term fuel option for long-haul trucking, offering diesel-like operational efficiency while supporting lower emissions and reduced dependence on imported fuel.
GreenLine Mobility, among the largest LNG trucking operators in the country, currently operates more than 1,000 LNG-powered heavy-duty trucks across key logistics corridors. The company has also started deploying electric trucks for short-haul operations and plans to scale its fleet to 10,000 vehicles over the next few years.
The momentum comes at a time when the government is evaluating incentive programme worth over $1 billion to accelerate adoption of cleaner commercial vehicles, as part of broader efforts to reduce dependence on imported fossil fuels and strengthen India’s energy security.
However, large-scale electrification of heavy-duty freight transport is still expected to take time due to challenges related to charging infrastructure, long-distance range capability and higher upfront vehicle costs.
In comparison, LNG trucks are increasingly being viewed as a lower-emission alternative capable of supporting immediate decarbonisation goals while maintaining operational efficiency for long-distance freight movement. LNG-powered trucks can travel up to 1,200 km on a single tank and reduce carbon emissions by up to 40% compared with diesel vehicles.
The growing focus on LNG is also driving investments in supporting infrastructure. Ultra Gas & Energy, a subsidiary of GreenLine, currently operates seven LNG refuelling stations and plans to expand the network to 100 stations along major freight corridors nationwide. Each hub is being developed as an integrated clean mobility facility equipped with LNG refuelling, EV charging and battery-swapping capabilities.
Industry estimates suggest that replacing 10% of India’s diesel trucking fleet with LNG vehicles could potentially reduce annual foreign exchange outflows by nearly $3 billion through lower diesel imports.
Sector stakeholders believe policy interventions such as toll concessions, faster approvals for LNG dispensing stations, GST incentives and carbon credit frameworks could play an important role in accelerating adoption of alternative fuels in commercial transportation.
Source: IANS
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