India is embarking on a bold journey to significantly enhance its current 6% share of natural gas within its energy mix to a robust 15% by the year 2030. This audacious endeavor is being spearheaded by Rameswar Teli, the Minister of State in the Ministry of Petroleum & Natural Gas. The government is resolutely pursuing an array of far-reaching strategies to realize this vision, as elaborated by the minister in a written response to the Lok Sabha.
Strategic Steps to Achieve the 2030 Target
The government’s multifaceted approach to achieving a 15% natural gas share in the energy amalgamation by 2030 encompasses a series of strategic actions:
Expansion of National Gas Grid Pipeline: A pivotal step involves the expansion of the National Gas Grid Pipeline, creating an extensive network for efficient distribution of natural gas across the nation.
- City Gas Distribution (CGD) Network Enhancement: The expansion of the City Gas Distribution network is another cornerstone of the strategy. This initiative ensures that urban and suburban areas have accessible and reliable sources of natural gas.
- Liquefied Natural Gas (LNG) Terminals Establishment: Setting up LNG Terminals is a crucial aspect, facilitating the import and storage of liquefied natural gas to meet the growing demand.
- Domestic Gas Allocation for CNG and PNG: The government is dedicated to ensuring a steady supply of domestic gas for Compressed Natural Gas (CNG) in the transportation sector and Piped Natural Gas (PNG) for domestic usage. This allocation is classified as “no cut,” ensuring stability.
- Market and Pricing Freedom for Specific Gas Sources: The government’s forward-looking stance includes granting marketing and pricing freedom to gas extracted from high-pressure/high-temperature areas, deep water, ultra-deep water, and coal seams. This promotes exploration and utilization of diverse gas sources.
Promotion of Bio-CNG through SATAT: The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative takes center stage in promoting Bio-CNG, a sustainable and eco-friendly alternative for transportation fuel.
Strategic Partnerships for LNG Supply
Recent achievements mark significant milestones in India’s pursuit of a heightened natural gas share:
Indian Oil’s Agreement with Total Energies: On July 10th, Indian Oil solidified a crucial agreement with Total Energies Gas and Power. This pact entails the supply of up to 0.8 million metric tonnes per annum (MMTPA) of LNG for a decade, commencing in 2026. The LNG will be sourced from Total Energies’ portfolio.
Indian Oil’s Collaboration with ADNOC LNG: Another significant pact was established on July 13th between Indian Oil and Abu Dhabi Gas Liquefaction Company Ltd. (ADNOC LNG). This strategic collaboration involves the supply of up to 1.2 MMTPA of LNG over a span of 14 years, beginning in 2026.