India aims to cut petroleum imports, boost alternative fuel use
SINGAPORE (Reuters) — India is aiming to cut its oil products imports to zero as it turns to alternative fuels, such as methanol, in its transport sector, according to a government official.
A specific timeline could not be provided, due to challenges with the distribution and availability of alternative fuels such as liquefied natural gas (LNG) in India.
"Auto-rickshaws are using liquefied petroleum gas (LPG) now,” said Transport Minister Nitin Gadkari. “LNG is important, but the availability of LNG and distribution is a big challenge...we have to develop that."
India is also planning to start 15 factories to produce second generation ethanol from biomass, bamboo and cotton straw as it aims to develop its mandate to blend ethanol into 5% of its gasoline.
India imported approximately 33 MMt of oil products from April 2016 to February 2017, an increase of nearly 24% from the same period a year ago. Most of the imports comprise petroleum coke and LPG.
Energy consumption in India, the world's third-biggest oil consumer, is expected to grow as it targets between 8% to 9% economic growth this fiscal year, from around 7% in 2016/17.
To cut the country's carbon footprint, New Delhi wants to raise the use of natural gas in its energy mix to 15% in three to four years, from 6.5% now.
India is also developing LNG bunker ports and plans to develop its electric vehicle fleet, Gadkari said.
Reporting by Jessica Jaganathan; Editing by Christian Schmollinger
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