BPCL Eyes LNG Expansion, Set to Sign 5-Year Deal with ADNOC.

BPCL is also betting on LNG-powered trucks as a viable alternative to diesel for heavy-duty, long-haul transportation, Gupta added.

Discussing BPCL’s CGD business during the company’s Q3FY25 investor call, he mentioned that the company is actively exploring long-term LNG supply contracts, including Henry Hub-based or other index-linked deals, to address shortfalls in domestic APM (Administered Pricing Mechanism) gas supply.

BPCL has already set up two regasified LNG (RLNG) stations and plans to establish 10 more along key highways, requiring an investment of ₹150-200 crore.

India’s Rising Energy Demand and LNG’s Role

Highlighting the country’s growing energy needs, Gupta noted that while global energy consumption is rising at 1.2-1.3% annually, India’s growth rate is expected to be around 4-4.5%.

India currently consumes 5.4-5.5 million barrels per day (mb/d), a figure projected to rise to 8.5 mb/d by 2040. Given domestic supply constraints, he emphasized the need for alternatives:

• Renewables and EVs, which require time for large-scale adoption


• Green hydrogen, currently the most expensive option


• LNG, which offers a lower carbon footprint and is gaining traction as a key transition fuel

“With its lower CO2 emissions, LNG is emerging as a preferred energy source, and BPCL is positioning itself at the forefront of this shift,” Gupta added.

HBL