Sunday, July 6, 2025
  • Home
  • About us
  • Privacy policy
  • Advertise with us
  • Contact us
Fii News Logo
No Result
View All Result
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports
Newsletter
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports
Fiinews
No Result
View All Result
Home Industry Sectors

Investors urged to tap plethora of gas opportunities

Fiinews by Fiinews
February 21, 2020
in Industry Sectors, Investment, Power
Reading Time: 4 mins read
A A
0
GAIL.
0
SHARES
10
VIEWS
LinkedinShare on Twitter

0:00

Booming gas sector in near future

 

GAIL LOGO

 

Investors have been urged to consider the plethora of opportunities offered by the natural gas sector at a time when government is focusing on increasing the share of natural gas in overall energy needs of the country.

It is a sector with immense potential to create wealth for the promoters of companies, said D K Sarraf, Chairperson, Petroleum & Natural Gas Regulatory Board (PNGRB), Government of India, in urging the investors at the National Oil & Gas Conclave 2020 held in New Delhi on 29 Jan 2020.

He cited the example of Adani Gas and other firms that earned huge profits and increased the wealth of the companies to enthuse small and medium investors to look at the exciting opportunities up ahead.

The 11th round of bidding will be announced very shortly, he added.

There was a great interest generated in the previous rounds of bidding in which several bidders got licenses.

In the 9th round 86 bidders got licenses and in the 10th round another 50 were given licenses.

The gas sector will be booming in the near future because the government had taken policy initiatives to increase the share of natural gas in the basket of energy sources from the present 6% to 15% by the year 2030.

Plans are to double the present 15,000 km of natural gas distribution pipeline over the next few years, said Sarraf at the conclave organized by PHD Chamber of Commerce and Industry.

PNGRB has authorized construction of so many pipelines.

The country is also aiming to build a gas trading hub to help develop the domestic gas market and is working out regulations for the proposed hub, informed Sarraf. In this, the private operators are needed to be given operational freedom in marketing and pricing.

The PNGRB also wants the inclusion of natural gas in the GST regime, he said. Other than in the auto sector and households, the government is encouraging the use of gas by other industries as well.

The government has taken a series of initiatives to make the sector investor friendly. These were resulting in greater interest in bidding in the upstream projects by the private investors, he pointed out.

Since natural gas had a tremendous cost advantage over petrol, diesel, it would increase savings of the users and also for people who use piped gas supplies at home.

On the whole, India’s energy needs will only be increasing tremendously as the country progress in its journey towards the US$5 trillion economy by 2024.

A snapshot of what the government was doing in the sector was presented at the conclave by Amar Nath, IAS, Joint Secretary, Ministry of Petroleum & Natural Gas.

The sector presented adequate returns to investors in the upstream projects, he pointed out.

Outlining the various initiatives taken by the government, Nath said the increasing role the government is playing as a facilitator, not only in the Ministry but also helping investors with related work in other Ministries, the ease of doing business had increased.

The government does not intervene in operations and had given the investors greater freedom to choose the blocks they want to bid all the year-round as opposed to NELP where the government carved out the blocks.

The new Open Acreage License Policy gives the bidders an opportunity to bid all the year round and the bidders can choose an area which then is put up for bidding, said Nath.

He also mentioned the National Data Repository that is made available to all. The data repository, updated constantly, has been set up at a cost of Rs.3,000 crore.

The Government is also serious in getting feedback from the investors and incorporate suggestions that make the process easier, he said referring to a recent stakeholders meeting held by the Minister.

This is an effort to find out how best the government can help in the implementation of cleared projects. Then there is dispute redressal mechanism in place, he informed.

The Directorate General of Hydrocarbons (DGH) is working more like an agent of the investors from the private sector and a facilitator of the sector which is the key driver of the country’s economic growth.

As the country’s GDP grows, its energy requirements will also grow, added Dr. C Laxma Reddy, Additional Director at DGH.

India at present is the third-largest consumer of fuel after the USA and China and by 2040 India’s oil demand will double to 10 million barrels per day.

The government aims to increase domestic production to at least substitute 10 per cent of imports.

The new bidding process, OALP, is but one of the initiatives taken by the government to improve the ease of doing business.

Four rounds of OLAP bidding have been carried out and an area allotted is 136,000 sq km for this, said Dr Reddy.

The government policies are aimed at increasing output, increase in exploration in unexplored areas.

The national oil companies have also been allowed to have liaison with foreign companies to bring in technology that helps efficiency in production.

Dr. Reddy urged the industry to partner the government in the sustainable growth in the hydrocarbon sector.

Welcoming the guests, Sanjay Aggarwal, Senior Vice President, PHD Chamber, argued the case for sourcing India’s energy needs from sources other than the Middle East that at present was volatile and unpredictable.

As India’s oil requirements will grow in the future, this is one aspect, he hoped, the government will keep in mind.

The government has plans to increase share of natural gas to 15% in India’s fuel basket in order to make India a gas-based economy, he said.

Rajeev Kumar Mathur, Chairman, Hydrocarbons Committee, PHD Chamber, called on the states to come out with their respective state-specific natural gas policies that will enable clean fuel distribution across the country. fiinews.com

Tags: PHD Chamber of Commerce and Industry
ShareTweetShare

Related Posts

IPA
Investment

Invest: Serendipity Space raises pre-seed round

by Fiinews
July 5, 2025
0
17

Company leveraging space-based crystallization technology Serendipity Space, a pioneering space-tech company developing microgravity-based pharmaceutical manufacturing solutions, has raised its pre-seed...

Indian Steel Association
Investment

Invest: India needs $200bn for expansion of mills

by Fiinews
July 4, 2025
0
17

Infra development requires 400mt annual steel production by 2035 Capital infusion of approximately US$200 billion by 2035 for an annual...

PIB

Invest: PSBs told to strengthen credit to MSMEs

June 29, 2025
16
PIB

Invest: Minister wants further development of IFSCS

June 28, 2025
20
PIB

Invest: SMFCL to finance maritime sector

June 28, 2025
18
Capital A Logo

Invest: Manufacturers urged to embrace technology

June 25, 2025
14
SBI YONO

POPULAR NEWS

  • Cristina Dnv

    Projects: Indian yards set to build green ships, says DNV expert

    0 shares
    Share 0 Tweet 0
  • Market: Indian-origin UGF scales heritage consumer brands globally

    0 shares
    Share 0 Tweet 0
  • Technologies: Royal Diamond sponsors aerspace Industries’ drones in UAE

    0 shares
    Share 0 Tweet 0
  • Investments: Foreign investors see India as long-term destination for fund placings

    0 shares
    Share 0 Tweet 0
  • Markets: Blue Dart maintains positive outlook on India

    0 shares
    Share 0 Tweet 0

Fiinews.com features through news articles on business opportunities in the Indian market for the benefits of foreigners. It is also a platform for international businesses to showcase through elaborate articles on their products & services to the Indian consumers and corporations exploiting industrialisation of the country.

7Clicks Media is a Singapore based Media & PR company offering over 100,000
impressions via our targeted communication strategy.

It is led by editor-in-chief Gurdip Singh who has worked over 45 years reporting on
Asian businesses.

Recent News

  • Export: India to ship non-GMO soybean to EU
  • Tender: Take care of new urban development
  • Manufacturing: Framework on Drones by Sep-Oct
  • Project: Joint maritime professionals launched
  • Market: Daimler bullish on construction sector

Pages

  • About US
  • ADVERTISE ON FIINEWS.COM
  • CONTACT US
  • EVENTS
  • FII-NEWS.COM PDF ARCHIVE
  • Home
  • News
  • PRIVACY POLICY

Subscribe to Newsletter

  • About
  • Advertise
  • Careers
  • Contact us

© 2024 FIINEWS - Design and developed by 7clicksmedia.

No Result
View All Result
  • Tenders
  • Projects
  • Markets
  • Manufacturing
  • Investment
  • Technology
  • Exports

© 2024 FIINEWS - Design and developed by 7clicksmedia.