IEA-India collaborate in the natural gas sector

International Energy Agency (IEA) Executive Director Dr. Faith Birol sees India as a centre stage of all global energy players in the longer term.

India has set a very ambitious target of increasing the share of natural gas from 6 % to 15 % by 2030 in energy mix target through market reforms, enhancing infrastructure and capacity building, he noted at a webinar on “Building a Natural Gas-Based Economy in India Amidst a Changing Global Gas Market Landscape”.

India and IEA have been cooperating across a range of areas, including oil security, energy efficiency, statistics and technology since India became an Associate Country of IEA in March 2017.

The webinar, held 1 July 2020, is the first collaborative activity between the IEA and the Ministry of Petroleum and Natural Gas in the realm of a gas-based economy.

The genesis of this collaboration can be linked to the launch of the first in-depth review of India’s Energy Policies by IEA in January 2020, said the Petroleum and Natural Gas Ministry.

The IEA had lauded the Indian Government’s efforts to increase the share of gas in the energy mix and provided recommendations to support the Government’s goals of promoting well-functioning energy markets.

The collaboration of India and IEA in the natural gas sector are intended to develop relevant knowledge sharing and experiences on a range of issues including natural gas infrastructure, regulation and gas hub development to help facilitate India’s national efforts to increase the share of natural gas in the energy mix and strengthen India’s energy security, it said.

Petroleum and Natural Gas Minister Dharmendra Pradhan believes that India is all set to emerge as one of the primary drivers of growth in gas demand in Asia, despite the pressing Covid-19 challenges, owing to a combination of Government’s pursuance of consistent policies and initiatives, as well as fast developing pipeline infrastructure.

In order to give a fillip to the gas-based economy, the focus is being given to enhancing domestic gas production, expeditious development of gas infrastructure as well as the development of the Gas market by providing open access to gas infrastructure, he pointed out.

On the creation of a free gas market, the Minister said that the Government is progressively moving towards a marketing and pricing freedom regime in the country.

Gas grid is being expanded to new markets in the eastern and north-eastern parts of the country with the Government’s supports of capital grants for Pradhan Mantri Urja Ganga (PMUG) and Indradhanush North Eastern Gas Grid projects.

Coverage of City Gas projects is being expanded to 232 Geographical Areas (GAs) spread over more than 400 districts, with the potential to cover about 53% of the country’s geography and 70% of the country’s population.

Efforts are underway to rationalise gas pipeline tariff structure for improving the affordability of gas across the country and for attracting investments into the gas infrastructure, the Minister informed.

The present zonal tariff structure for the gas pipelines results in additive tariffs for the usage of multiple pipelines to transport natural gas from the distant gas supply sources.

It causes a wide disparity in pipeline tariffs particularly or the buyers located distant from the gas sources and thus it hinders the development of new gas markets and demand centres in far-flung and remote areas.

Pradhan said to create a level playing field among gas consumers located in far and remote areas, the existing zonal tariff structure is currently being reviewed to make it rational and competitive.

The new tariff structure would facilitate in creating a single gas market by attracting investment to complete Gas Grid as well as ensuring equitable access to natural gas across the country.

Gas-based industries would benefit, with a new tariff structure which would improve gas affordability across the country.

Further, a simplified tariff structure would also encourage gas industries to utilize the opportunity of procuring their gas requirement through the Gas Trade Exchange(s) platform based on the market mechanism, Pradhan elaborated.

A level playing field among industries would promote minimizing their input cost and improve competitiveness in the global production chain.

Apart of industries, a new rationalised tariff structure would also give a boost for expeditious development of CGD projects and PNG and CNG services to the citizens, he assured. #iea #opec #climate #carbon #aramco #qatargas /


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