Shell calls on India to emulate China LNG model

Vol 22, PW 15 (16 May 19) Midstream & Downstream

Shell believes India can learn a thing or two from China about how to combat rising pollution by replacing diesel with cleaner burning LNG as fuel for heavy duty trucks.

Ashwani Dudeja, chief commercial officer and general manager at Hazira LNG and Shell Energy India, called on India to emulate China during a session on 'Natural gas for transport: Driving clean mobility forward' at the two-day NGV India Summit organised by Messe Frankfurt in Delhi on May 9. "I believe India can adopt a number of policy initiatives taken by China to create a sustainable economic system for the development of the auto-LNG market," said Dudeja.

Before 2010, he added, there was not a single LNG-fired vehicle in China but by end-2018 it had more than 350,000 LNG-fired vehicles, mostly long distance heavy duty trucks. Total LNG demand in China in 2018 was 44m t/y, said Dudeja, and of this 19m tonnes was transported by road.

And from this 19m tonnes, 6.7m tonnes was sold as transport fuel through over 2500 fuel outlets. More than 75,000 LNG-fired trucks were added in 2017.

"In at least three districts of China, including Beijing," said Dudeja, "diesel-fired trucks are banned." He also highlighted the German government's cash subsidy of up to 12,000 Euros to convert trucks from diesel to LNG use.

"The German government has also worked out a two-year toll holiday for LNG trucks," he said.