The government has unveiled a draft LNG policy that seeks to incentivise truck fleets in the country to switch to LNG use.

It also aims to raise the LNG regasification terminal capacity to 100 million tonnes (mt) per year by 2040 from 40 mt and build LNG filling terminals across the country’s highways.

The policy said LNG as an import substitute of petrol and diesel can save foreign exchange worth $200 million per mt per annum. The policy set a target to increase the country’s LNG re-gasification capacity to 70mt by 2030 and 100mt by 2040.

The policy prepared by the petroleum ministry aims to set up a framework for the promotion of gas and find ways for LNG adoption in sectors which currently does not use it as a fuel.

The policy targets to convert 10 per cent of long haul heavy duty trucks to ply on LNG. The timeline to achieve the target has not been specified in the draft document.

The automotive companies will be incentivised towards manufacturing LNG-based heavy vehicles and creating ancillary manufacturing units through tax exemptions and green certifications, the draft policy said.

There is also a plan to create enabling infrastructure to transport LNG through railways and trucks. The policy envisages promotion of dedicated highways with extensive LNG infrastructure.

Besides, there are plans to establish 1,000 LNG outlets for long-haul, heavy-duty trucks and other vehicles.