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India has set its sights on an ambitious target: to elevate its current 6% share of natural gas within its energy mix to an impressive 15% by 2030.
Spearheaded by Rameswar Teli, the Minister of State in the Ministry of Petroleum & Natural Gas, this audacious endeavor is driven by a comprehensive and multifaceted strategy.
Minister Teli elaborated on the strategic steps and partnerships propelling India towards this goal in a recent written response to the Lok Sabha.
Government’s Comprehensive Approach: Paving the Way for a Natural Gas Revolution
1. Expansion of National Gas Grid Pipeline:
One of the cornerstones of India’s strategy involves the expansive growth of the National Gas Grid Pipeline. This expansion is more than just a network of pipes; it’s a conduit for efficiency and accessibility.
By creating an extensive infrastructure, the government aims to ensure the efficient distribution of natural gas to every corner of the nation. This move will not only stimulate economic growth but also bolster energy security.
2. City Gas Distribution (CGD) Network Enhancement:
As urbanization accelerates, so does the demand for reliable energy sources. Recognizing this, the government is actively enhancing the City Gas Distribution network.
This expansion ensures that urban and suburban areas have access to clean and sustainable energy sources. Natural gas’s versatility makes it an invaluable asset for India’s energy landscape, from household cooking to vehicular fuel.
3. Liquefied Natural Gas (LNG) Terminals Establishment:
Liquefied Natural Gas (LNG) terminals are pivotal in meeting the burgeoning demand for natural gas. These terminals act as gateways, facilitating LNG import, storage, and distribution.
By strategically positioning these terminals, India can tap into global LNG supplies, diversifying its energy sources and ensuring a stable supply.
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4. Domestic Gas Allocation for CNG and PNG:
To ensure stability in supply, the government has allocated domestic gas for Compressed Natural Gas (CNG) in the transportation sector and Piped Natural Gas (PNG) for domestic usage.
This “no cut” classification ensures a consistent and reliable energy source, powering vehicles and homes.
5. Market and Pricing Freedom for Specific Gas Sources:
India’s approach to natural gas is forward-looking and adaptable. The government encourages exploration and innovation by granting marketing and pricing freedom to gas extracted from challenging sources like high-pressure/high-temperature areas, deep water, ultra-deep water, and coal seams.
This promotes energy diversification and fosters technological advancements in the sector.
6. Promoting Bio-CNG through SATAT:
Sustainable energy solutions is at the heart of India’s strategy. The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative takes center stage in this endeavor.
By promoting Bio-CNG, a renewable and eco-friendly alternative to traditional fuels, India aims to reduce its carbon footprint while addressing energy needs.
Milestones in LNG Supply Partnerships: Strengthening Energy Security
Recent milestones underscore India’s commitment to expanding its natural gas share:
1. Indian Oil’s Agreement with Total Energies:
A pivotal agreement was reached between Indian Oil and Total Energies Gas and Power. This strategic partnership entails the supply of up to 0.8 million metric tonnes per annum (MMTPA) of LNG over a decade, commencing in 2026.
The LNG will be sourced from Total Energies’ diverse portfolio, ensuring a reliable and diversified supply.
2. Indian Oil’s Collaboration with ADNOC LNG:
Another significant collaboration was established between Indian Oil and Abu Dhabi National Oil Company (ADNOC LNG). This partnership involves the supply of up to 1.2 MMTPA of LNG for 14 years, starting in 2026.
India enhances its energy security and strengthens its position in the global energy landscape by forging partnerships with international energy players.
Progress and Future Prospects: Driving Towards a Sustainable Energy Future
India’s journey towards achieving a 15% natural gas share by 2030 is underway.
The government’s comprehensive approach and strategic partnerships underscore its energy security and sustainability commitment.
While challenges may arise, India’s resolve to diversify its energy mix, reduce emissions, and ensure a stable energy supply remains steadfast.
Conclusion: Pioneering a Gas-Powered Future
As India propels itself towards a gas-powered future, the transformational journey from a 6% to a 15% natural gas share in its energy mix by 2030 is a testament to its dedication and vision.
With an expanding pipeline network, a growing CGD infrastructure, and strategic partnerships
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