India may face tech, logistical snags as it tries to explore CNG imports

The government's draft policy encouraging imports in compressed form over LNG ignores major technological and logistics hurdles

India’s ambitious plans to explore imports of natural gas, a key driver for a $10-trillion economy, in compressed form (CNG) instead of in liquefied molecules (LNG), may falter in the face of technological and logistics hurdles. A new draft policy encouraging CNG imports on the basis of cost savings will also confuse investors in India’s crowded, but slowing LNG business.

At the peak of Covid-19, in September 2020, then Gujarat chief minister Vijay Rupani approved a proposal for a CNG import terminal by the UK-based Foresight Group, Padmanabh Mafatlal, and Dutch dredging firm Royal Boskalis. Of