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Challenges for LNG Adoption in India Says NITI Aayog and the Kingdom of the Netherlands 

NITI Aayog and the Netherlands’ Embassy released a report titled ‘LNG as a Transportation Fuel in Medium and Heavy Commercial Vehicle’ at India Energy Week. The report, the first outcome of their cooperation since 2020, was launched by Shri. Suman Bery, Vice Chairperson of NITI Aayog, and H.E. Frederik Wisselink, Energy Envoy of the Netherlands’ Ministry of Economic Affairs and Climate Policy.

The report was attended by Shri Praveen Mal Khanooja, Additional Secretary of the Ministry of Petroleum and Natural Gas, H.E. Mrs. Marisa Gerards, Ambassador of the Netherlands in India, Nepal, and Bhutan, and Ms. Mansi Tripathy, Chairman of SHELL Group of companies.

The report explores different challenges and barriers for LNG adoption in India and recommends a roadmap of actionable solutions. The report further highlights the need for the development of a transparent implementation framework for these recommendations, driven by near-term goals of demand creation and market seeding. 

Speaking on the occasion, Shri Suman Bery said “This report, jointly prepared by NITI Aayog and the Embassy of Netherlands, focuses on leveraging LNG as a fuel source and customizing its use in the medium and commercial vehicle segment. It examines the coordination issues faced by the various stakeholders and highlights the lessons that can be learnt from other countries in addressing these challenges.”

 Mr. Frederik Wisselink, the Netherlands Energy Envoy, said, “The Netherlands, just as India, is making significant strides in clean energy, with a primary focus on carbon reduction through an energy transition. To achieve the international climate goal set out in the 2015 Paris Agreement, there is great potential for the Netherlands expertise in the energy sector to work with India’s public and private sectors. The Netherlands is at the forefront of European initiatives to kick-start a green hydrogen revolution and replace fossil fuels. As Europe’s second-largest hydrogen producer, with the ambition to produce it in a clean way, and with the upcoming hydrogen network called the ‘backbone’ offering entry point for large future green hydrogen volumes, the Netherlands is keen to unlock green hydrogen solutions together with its international partners.”.

 Shri Praveen Mal Khanooja, Additional Secretary, Ministry of Petroleum and Natural Gas said, “The report highlights strategies which will help in achieving 15% gas share in primary energy supply and also the goal of Net Zero by 2070. The ministry is taking a multipronged approach towards LNG as a fuel and would be keen on working with stakeholders with respect to it” 

H.E. Mrs. Marisa Gerards, Ambassador of the Kingdom of the Netherlands in India, expressed her delight at the launch of the significant report resulting from the partnership with NITI Aayog. She emphasized on the role of the private sector which not only in India but also in the Netherlands is crucial in driving innovation and progress towards a greener future for all, like Shell India, which is bolstering such collaborative knowledge initiatives. Further, this joint report highlights both nations’ commitment to transform their energy sector for sustainable development and a way forward to becoming climate-resilient economies. 

Going forward, NITI Aayog and the Embassy of the Kingdom of the Netherlands plan to work together to further intensify their collaborations on sustainability, with a focus on the circular economy in addition to energy transition. 

Report is available online (https://niti.gov.in/report-and-publication).

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