INDIA IS BOOSTING ITS CNG INFRASTRUCTURE TO PROMOTE CLEANER TRANSPORTATION
India is witnessing significant momentum as it expands its compressed natural gas (CNG) infrastructure, focusing on cleaner fuel alternatives to reduce emissions and transportation costs. Leading the charge is Bajaj Auto, with its recent launches and initiatives aimed at enhancing awareness and accessibility of CNG. The company has rolled out its Freedom 125 CNG motorcycle, intending to capitalize on the growing demand for cost-effective and eco-friendly vehicles. Dinesh Thapar, the Chief Financial Officer of Bajaj Auto, stated, "Now we want to build awareness centres. It is planned for the current quarter," recognizing the necessity of educating consumers about the benefits of CNG.
Despite challenging sales figures for the Freedom 125, which has seen only 5,000 units dispatched each month recently, the optimist outlook remains. Industry reports suggest many potential customers are discouraged by the limited availability of CNG fueling stations and the associated wait times at existing locations. To address this, Bajaj is considering the establishment of exclusive CNG dispensing points for two-wheelers which could alleviate concerns about lengthy queues for fuel. Their expansion strategy includes aggressive campaigning and fostering customer engagement beyond the traditional showrooms to tap regional markets.
On the broader spectrum of CNG adoption, the Presidential Compressed Natural Gas Initiative (P-CNGI) is making strides across India and has expressed ambitions to convert one million commercial vehicles to run on CNG by 2027. Michael Oluwagbemi, the Programme Director for the initiative, remarked, "Our goal is to convert one million commercial vehicles to CNG by 2027," emphasizing the vast potential for CNG to serve as both an efficient and environmentally friendly alternative to traditional fuels.
Further highlighting this national movement, new construction of five mini-liquefied natural gas (LNG) plants has been flagged off by the Nigerian National Petroleum Company (NNPC) to deepen domestic gas utilization, enabling both the reduction of dependency on imports and job creation. At the groundbreaking ceremony, Oluwagbemi articulated the strategic advantages of Kogi State, where these plants will be established, calling it perfectly positioned to facilitate cost-effective gas distribution across ten states. Kogi’s enhancements to its infrastructure aim to catalyze economic growth within the region, as natural gas adoption accelerates.
Turning the focus back to India's automotive sector, sales of CNG-powered vehicles have surged impressively, quadrupling from 163,000 units in 2021 to over 550,000 units by 2024. Analysts project even greater traction, estimating by 2030, nearly half of all vehicles sold could be CNG-powered. This significant uptick can be attributed to collaborative efforts by organizations like PHINIA, which is actively seeking to develop advanced innovations for cleaner fuels within India.
Todd Anderson, Chief Technology Officer at PHINIA, expressed optimism about the company's role, stating, "The diverse needs of the Indian market make it ideal for innovations in the clean mobility segment." The organization is integrating hydrogen with CNG to bolster emission reductions, demonstrating continued commitment toward creating efficient fuel systems to meet India’s unique market demands.
With government incentives aiming to support the deployment of CNG facilities, such as slashing taxes on CNG vehicles from 28% to 18%, consumers are expected to adopt these fuel options systematically, fueling additional demand. The existence of upwards of 192 conversion centers across the regions facilitates the emotionally driven push for cleaner transport solutions.
Challenges do persist, particularly concerning the availability of CNG refueling stations—currently around 50 across the nation serving over 200 million residents. Making it easier for users to access CNG is seen as pivotal for increasing transition rates from petrol to CNG powered vehicles. The government, alongside retail petrol stations, is under pressure to provide the necessary funding for CNG facilities, which would greatly alleviate the burdensome obstacles consumers currently face.
At the same time, the development of LNG infrastructure enhances energy security throughout Nigeria, with stakeholders highlighting the importance of not just creating availability for users but also stimulating economic growth through sustainable practices. Job creation initiatives are being lobbied to complement these infrastructure developments, particularly aimed at training young Nigerians entering the workforce.
Through the collaborative efforts of institutions, private entities, and government bodies, the expansion of CNG infrastructure holds promise not just for the automotive sector but for Nigeria's overall energy future. It sets the stage for cleaner, more sustainable transport solutions aligned with global energy trends. Enhanced diesel vehicles are turning to CNG where before it was absent, clearly marking the road to greener travel as necessary and achievable. This endeavor points to major transformations across the automotive spectrum, leading to improved emissions, economic prosperity, and collective national well-being.