oil and its products after China. India has built surplus world-class refining capacity using imported crude oil for exporting refined petroleum products. The net imports of crude oil is lesser by one fourth after accounting exports and imports of refined petroleum products. Natural gas production was 26.9 billion cubic meters and consumption 59.7 billion cubic meters during the calendar year 2019. During the financial year 2012–13, the production of crude oil was 37.86 million tons and 40,679 million standard cubic meters (nearly 26.85 million tons) natural gas. The net import of crude oil & petroleum products is 146.70 million tons worth of Rs 5611.40 billion. This includes 9.534 million tons of LNG imports worth of Rs. 282.15 billion. Internationally, LNG price (One million Btu of LNG = 0.1724 barrels of crude oil (boe) = 29.52 cubic meters of natural gas = 21 kg of natural gas = 29.2 liters diesel = 21.3 kg LPG = 0.293 MWh) is fixed below crude oil price in terms of heating value. LNG is slowly gaining its role as direct use fuel in the road and marine transport without regasification. By the end of June 2016, LNG price has fallen by nearly 50% below its oil parity price making it more economical fuel than diesel/gas oil in transport sector. In 2012-13, India consumed 15.744 million tons petrol and 69.179 million tons diesel which are mainly produced from imported crude oil at huge foreign exchange out go. Using natural gas for heating, cooking and electricity generation is not economical as more and more locally produced natural gas will be converted into LNG for use in the transport sector to reduce crude oil imports. In addition to the conventional natural gas production, coal gasification, coal bed methane, coal mine methane and Biogas digesters / Renewable natural gas will also become a source of LNG forming decentralised base for the production of LNG to cater to the widely distributed demand. There is possibility to convert most of the heavy duty vehicles (including diesel driven rail engines) into LNG fuelled vehicles to reduce diesel consumption drastically with operational cost and least pollution benefits. Also, the break even price at user end for switching from imported coal to LNG in electricity generation is estimated near US. The advent of cheaper marine CNG transport will restrict LNG use in high end transport sector to replace costly liquid fuels leaving imported