CNG & LNG Commercial Vehicle Market Poised for Rapid Expansion by 2032 – Persistence Market Research
The global shift toward greener transportation is driving rapid growth in the CNG (Compressed Natural Gas) and LNG (Liquefied Natural Gas) commercial vehicle market. With rising environmental concerns and a collective push to reduce carbon emissions, both government bodies and commercial vehicle manufacturers are increasingly investing in sustainable fuel alternatives to diesel and petrol. Natural gas-powered vehicles-especially CNG and LNG trucks and buses-are proving to be an effective transitional solution until electric commercial vehicles become more cost-effective and widely viable. In particular, long-haul transportation and logistics operators are turning to LNG commercial vehicles for their range and efficiency, while CNG vehicles are dominating urban and regional distribution due to their affordability and widespread fuel availability. Governments across the globe are actively supporting this shift through subsidies, policy reforms, and infrastructure investment, further boosting adoption.
Beijing Warns Against U.S. Trade Deals That Harm Chinese Interests
The U.S.-China trade war took another turn toward escalation on Monday as China threatened to retaliate against countries which make trade deals with the United States that would hurt Beijing’s interests. “Appeasement cannot bring peace, and compromise cannot earn one respect,” a spokesperson for the Chinese Commerce Ministry said on Monday. “China firmly opposes any party reaching a deal at the expense of China’s interests. If this happens, China will never accept it and will resolutely take countermeasures,” the world’s second-largest economy said. Since President Donald Trump took office earlier this year, the United States and China have been on a collision course in trade. The U.S. Administration, which has halted until July tariffs on other countries except China, is reportedly planning to use bilateral trade and tariff talks to have them limit their trade and deals with China, The Wall Street Journal reported last week, citing sources familiar with the ongoing negotiations. According to the Journal’s report, the Trump Administration is seeking to have countries commit to limiting their trade with China and isolate the world’s second-largest economy in exchange for tariff relief. China now vows retaliation against countries that cave to U.S. pressure to seek to isolate Beijing. “The United States has abused tariffs on all its trading partners under the banner of so-called “reciprocity”, while at the same time forcing all parties to start so-called “reciprocal tariff negotiations” with it,” the spokesperson for the Chinese Commerce Ministry said today. China blamed the U.S. for what it described as “unilateral bullying in the economic and trade fields under the guise of ‘reciprocity’”. “Once international trade returns to the “law of the jungle” where the strong prey on the weak, all countries will become victims,” China said. The U.S.-China trade war and concerns about global economic growth and a possible recession in the world’s top oil consumer, the United States, resurfaced early on Monday and dragged oil prices down by 2% at Asian trade open.
Oil Prices Begin the Week With a Dip
Crude oil prices began trade this week with a decline amid diminished hopes for a quick end to the war in the Ukraine and the prospect of lower demand amid the tariff turmoil. News of nuclear deal negotiations between the United States and Iran contributed to the trend. At the time of writing, Brent crude was trading at $66.83 per barrel and West Texas Intermediate was changing hands for $63.58 per barrel. “The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+,” IG analyst Yeap Jun Rong told Reuters. The majority of international market observers believe the tariff-driven rearrangement of global trade flows will affect demand for crude oil negatively, even as a number of Asian energy importers seek to buy more U.S. oil as part of efforts to reduce their trade surpluses with the United States to avoid punishing tariffs. Meanwhile, a second round of U.S.-Iran talks concluded this weekend with the two sides indicating progress had been made. “Today, in Rome, over four hours in our second round of talks, we made very good progress in our direct and indirect discussions,” one senior Trump administration official said, as quoted by CNN. “I can say that there is movement forward. We’ve reached better understanding and agreement on some principles and goals in these Rome negotiations,” Iran’s Foreign Minister, Abbas Aragchi said. OPEC+’s decision to add 411,000 bpd in daily supply from May continued to weigh on prices despite suggestions it may be later reconsidered and despite an intention on the part of the group’s leadership to get production control laggards in line by enforcing compensation output cuts. The top overproducers, Iraq and Kazakhstan, earlier this month submitted updated plans for compensatory cuts to their oil production after failing to keep their quotas for months.
LPG distributors issue 3-month ultimatum; threaten indefinite countrywide shutdown
The LPG Distributors Association has warned of an indefinite countrywide strike if its long-pending demands, including a significant hike in distributor commission, are not addressed within the next three months. The warning follows a resolution passed at the national convention of the association held in Bhopal on Saturday. “A proposal has been approved by the members from various states about the charter of demands. We have also written to the Petroleum of National Gas Ministry about the demands of LPG distributors. The present commission being given to LPG distributors is very low and it is not commensurate with the operational cost,” the association’s president BS Sharma said in a statement on Sunday. According to the letter submitted to the Union government, the commission on LPG distribution should be revised to a minimum of ₹150 to align with rising operational costs. The association also raised concerns over alleged irregular practices by oil companies. “LPG supply is based on demand and supply. But oil companies are forcibly sending non-domestic cylinders to distributors without any demand, which is against legal provisions. It should be stopped immediately,” the letter stated.
India Attracted $ 36 billion investment from pre-2014 NELP bid rounds: Oil ministry
India attracted over $36 billion investment from nine NELP bid rounds held before 2014, and has so far yielded 177 oil and gas discoveries, according to a report commissioned by the Petroleum Ministry. Under the New Exploration Licensing Policy (NELP), blocks were awarded to bidders promising maximum exploration, allowing them to recover investments from oil and gas they discover and produce before sharing profits with the government. In 2016, this was replaced by a revenue-sharing model, where blocks go to firms offering the highest share of output to the government. The 254 blocks awarded in nine bid rounds of NELP between 1999 and 2010 attracted USD 17.6 billion investment in exploration that led to 67 oil discoveries and 110 gas finds, and another USD 18.64 billion in development of some of those discoveries. The 144 blocks awarded in eight big rounds of Open Acreage Licensing Policy (OALP) from 2018 to 2022 saw USD 1.37 billion investment in exploration, leading to 6 oil discoveries and 4 gas finds, the report said. Reliance Industries and its partner BP Plc’s eastern offshore KG-D6 block, which produces a third of all natural gas produced in the country, as well as the showpiece KG-DWN-98/2 (KG-D5) block of state-owned Oil and Natural Gas Corporation (ONGC) were awarded in NELP rounds. The interim report of the Joint Working Group constituted by the ministry on issues related to Ease of Doing Business in the Indian Upstream Sector said NELP helped increase area under exploration and attract private and foreign investment into India’s exploration and production (E&P) sector. “Major international companies such as British Gas, Cairn Energy, Eni, BHP Billiton, and BP participated in the NELP bidding rounds, bringing advanced exploration technologies and capital into India’s upstream industry.” Despite its successes, NELP rounds had its challenges, it said. “One of the major issues was the delays in obtaining clearances, including environmental and regulatory approvals, which often resulted in significant project delays. “Additionally, disputes over cost recovery under the PSC regime led to disagreements between contractors and the government, with both parties interpreting the contracts differently.” Recognizing the need to improve the Ease of Doing Business in the sector, the government introduced a series of policy reforms and incentives aimed at addressing these inefficiencies. In 2016, the Hydrocarbon Exploration and Licensing Policy (HELP) was introduced to address the challenges faced under NELP and create a more investor-oriented regime. HELP replaced the production sharing contract (PSC) model with a Revenue Sharing Contract (RSC) model, simplified the licensing framework, and introduced greater flexibility in exploration and production activities. “This marked a transformational shift in India’s E&P regime, with a stronger focus on reducing operational complexities, increasing transparency, and providing greater autonomy to operators,” the report said, adding RSCs reflected the government’s vision to create a more transparent, efficient, and competitive environment in India’s oil and gas sector, aligning with global best practices.
India targets reducing taxes on US ethane, LPG
India is preparing to scrap import taxes on U.S. ethane and liquefied petroleum gas (LPG) as part of ongoing trade negotiations with Washington, according to sources familiar with the talks. The plan is aimed at easing India’s tariff load and narrowing its trade surplus with the United States, as pressure mounts on Asian economies to address trade imbalances under U.S. President Donald Trump’s tariff regime. The proposal follows discussions to also eliminate duties on U.S. liquefied natural gas (LNG) and expand energy imports from the U.S. India currently applies a 2.5% import tax on ethane, used primarily in petrochemical production, and on propane and butane, which are key components of cooking gas. In fiscal year 2023-24, India imported 18.5 million metric tons of LPG valued at $10.4 billion, most of it sourced from the Middle East. India is the world’s second-largest importer of U.S. ethane after China, bringing in 65,000 barrels per day last year, U.S. Energy Information Administration data shows. China imported 227,000 barrels per day, although those volumes may fall amid the U.S.-China trade war and rising tariffs. Reliance Industries, which operates the world’s largest petrochemical complex, is India’s top ethane importer. India and the U.S. agreed in February to work towards the first phase of a broader trade deal by the end of this year. The goal is to grow bilateral trade to $500 billion by 2030 and reduce India’s $45.7 billion trade surplus with the U.S. Officials from India’s commerce and finance ministries will make the final call on any tax cuts, according to the sources, who requested anonymity. While removing duties may open the door to more imports, analysts say infrastructure limits could constrain India’s ability to significantly increase ethane shipments in the short term. “It will be challenging for the U.S. to increase ethane exports to India, as India seems to have already maximised its use of ethane as a feedstock,” said Cheryl Liu of Energy Aspects, as quoted by Reuters. India’s current cracker capacity supports up to 92,000 barrels per day of ethane use.
Russia’s Economy Ministry Lowers 2025 Oil Price Forecast
Russia’s Economy Ministry has lowered its forecast for oil prices this year in an update for its baseline scenario, reflecting the latest trends on global oil markets. Per the new scenario, Brent crude will average $68 per barrel, down from $81.7 per barrel in the September 2024 scenario, Interfax reported today. The ministry also updated its oil price forecast for the next two years, expecting Brent crude at an average of $72 per barrel for 2026, down from $77, to remain at $72 in 2027 as well, down from an earlier projection of $74.5 per barrel. For Urals, Russia’s flagship export blend, the Economy Ministry expects an average price of $56 per barrel this year. This price would be below the G7 price cap aimed at curbing Russia’s oil revenues, meaning exporters could use Western insurance and tankers to ship the oil—unless the G7 decides to lower the cap, as some in the group have suggested previously. “You can see how forecasters oscillate between total pessimism and total optimism,” a spokesperson for the ministry told Interfax, referring to the 2025 oil price forecast. “We believe this is a fairly conservative price forecast and with regard to the budget and to the sovereign wealth fund, we also believe it is a normal and realistic forecast.” Earlier this year, oil prices dropped 24% below the level stipulated in the country’s federal budget for the year. The decline came as a result of Trump’s tariff offensive, a persistent perception of an oversupplied market, and a stronger ruble. The prospect of peace in the Ukraine, fueled by the Trump administration also contributed to the oil price route from the past month. The situation prompted a warning from the governor of the central bank, who said the oil price rout could have an adverse effect on the Russian economy. “If the escalation of the tariff wars continues, this usually leads to a decline in global trade and the global economy and, possibly, demand for our energy resources. Therefore, there are risks here,” Elvira Nabiulina said.
Private players win big in new E&P round
For both public and private players in the oil and gas exploration and production (E&P) business, April 15, 2024, could well go down as a new dawn for the sector. As Hardeep Singh Puri, Minister of Petroleum and Natural Gas, argued: “The Indian hydrocarbon sector is entering a new era of accelerated exploration and development through investor-friendly reforms, swift approvals, scientific exploration, and a strong emphasis on sustainability.” The minister was addressing the Open Acreage Licensing Policy(OALP) Round-IX and Special Discovered Small Field (DSF) Signing Ceremony on Tuesday. The fact that seven out of a total of 28 blocks were won by Cairn Oil and Gas and one by BP-Reliance in partnership with Oil and Natural Gas Corporation (ONGC) has not only given credence to the increasing importance of the private sector in the upstream sector but also the government’s unwavering commitment to reducing its import dependence and securing its energy future. Says Krishan G Insan, an Energy Expert, a Fellow of European University Institute, Italy and Global Co-Chair of Sustainability Network of Chevening Alumnus: “The success story of the private players– both domestic and foreign majors—in the Indian oil and gas exploration and production (E&P) sector has already been well established under the NELP regime.”
EU Considers Lifting Methane Requirements for U.S. LNG
The European Union is considering what Reuters called tweaks to its methane emissions regulation in order to stimulate higher LNG imports from the United States, the publication has reported, citing unnamed sources in the know. The goal, per these sources, was to allow for “equivalent” methane standards to be applicable to U.S. liquefied natural gas exports to the European Union without weakening the overall regulation, Reuters noted in its report. The Biden administration pressured the energy industry in the U.S. to invest in methane emission tracking and control, which puts producers in a relatively favorable position. “The Commission has an ongoing dialogue with industry on all relevant matters related to our legislation,” a spokesperson for the EU’s executive organ told Reuters. The EU’s so-called methane regulation was approved by the European parliament last year and essentially requires all suppliers of liquefied natural gas to the bloc to accompany their cargos with documentation certifying that the methane emissions related to the production of the LNG were tracked, monitored, and, most importantly, minimized. Qatar did not take kindly to that regulation, stating it would simply stop selling LNG to European buyers, leaving said European buyers with a more limited pool of sellers. Now, it seems LNG supply security has trumped emission fears in Brussels, and not a moment too soon—methane emission reporting by LNG suppliers to the European Union was set to enter into effect from next month. LNG suppliers, by the way, were not overnight fans of the regulation. “The methane regulation in general is a good thing,” Ralf Dickgreber, chief of global LNG and biomass at France’s Engie, told an industry event recently. However, “we don’t know exactly how to interpret the rules out there . . . How to comply with it is very difficult at this stage,” the executive said, as quoted by the Financial Times.