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In India, , as per mandate of hon'ble Supreme Court of India for reduction of emission due to vehicles, compressed natural gas (CNG) powered city buses and passengers cars are in use since 2000. Their usage is limited to metropolitan cities like Delhi, Mumbai, Bangalore etc. due to limitation of CNG storage and dispensing infrastructure along with low energy density storage. High energy density liquid form of natural gas storage (LNG) can overcome these difficulties and promising in near future. Simultaneously, there is a need for development of efficient fuel storage system, fuel supply system, engine optimization & calibration, engine lubricant etc. suitable for implementation of LNG for automotive application. In this background, the present work is aimed at the framework of engine testing facility, development of dedicated lubricant and performance of the engine for LNG application.