India’s natural gas demand is being met through a combination of domestic production and imports of gas (LNG), and to support the growth of a gas-based economy, the government has implemented several initiatives.

These include permitting 100 percent foreign direct investment (FDI) under the automatic route for LNG infrastructure and categorising LNG under Open General Licensing (OGL) for ease of imports.

Currently, eight LNG regasification terminals are operational nationwide, with a total capacity of approx. 52.7 million tonne per annum (MTPA). In a written reply to the Lok Sabha, Minister of State for Petroleum and Natural Gas, Suresh Gopi stated that the government is actively setting up LNG stations across the Golden Quadrilateral, major national highways, and key mining clusters.  To date, 13 LNG retail stations have been commissioned by public sector entities, and 16 more by private players. LNG has been officially recognised as a transport fuel, with emission standards for LNG vehicles already notified.

Regulatory updates—including the 2025 amendment to the Static and Mobile Pressure Vessels (Unfired) Rules, now permit LNG vehicles in hazardous zones and enable mobile LNG dispensing for non-transport sectors such as railways, mining, and waterways.