Oil Minister Dharmendra Pradhan on Tuesday said that country’s consumption for natural gas will have to rise over three folds in the next 10 years, so that, the environment friendly fuel share increases to 15 per cent in the country’s energy basket.
The minister made the statement at a FICCI conference on gas infrastructure, held in New Delhi. While making his statement the Minister said that a massive $60 billion is already being spent to expand the gas infrastructure to meet such a demand.
Natural gas currently makes up for 6.2 per cent of all energy consumed in the country. To cut dependence on polluting coal and liquid fuels, the government is targeting its share to rise to 15 per cent by 2020-30.
Delivered the inaugural address at the India Gas Infrastructure Conference 2019 at @ficci_india. Shared my views on the diversification in India’s energy sector, growth in energy consumption,energy security and steps taken by #ModiGovt for the development of gas sector in India. pic.twitter.com/JwGuGfpDKx
— Dharmendra Pradhan (@dpradhanbjp) December 5, 2019
“Gas consumption has to rise to 600 million standard cubic metres per day for achieving 15 per cent share in energy basket” from current levels of 166 mmscmd, Pradhan said.
The current consumption comprises 80 to 90 mmscmd of domestic output and the remaining coming by way of imports, the minister said.
The government is investing in constructing LNG import terminals, laying pipelines and expanding city gas distribution network so that the usage of non-polluting fuel in the country rises.
Comparing natural gas with liquid fuels like diesel and furnace oil, Pradhan said, natural gas is cleaner as well as a cheaper fuel and it could help steer India as a transition/ bridging fuel towards a ‘low carbon future’.
India presently has 38.8 million tonnes per annum (mtpa) of liquefied natural gas (LNG) import terminal capacity. This is being expanded to 52.5 million tonnes in next 3-4 years, he said.
Also, an additional 14,700 km of gas pipeline is being laid to expand the existing network of 16,800 km.
City gas distribution networks for sale of CNG to automobiles and piped cooking gas to households is being expanded to 70 per cent of the country at an investment of Rs 1.2 lakh crore, he said.
Besides, plans are afoot to set up 5,000 compressed bio gas plants that will convert agri and municipal wastes into gas. These will have a capacity of 15 million tonnes by 2023, he said adding a letter of intents for nearly 500 CBG plants have already been issued.
For fuel investment in the gas sector, the government has is rationalising natural gas grid tariff structure and setting up a gas trading exchange or hub, he said.
India is the world’s third-largest energy consumer after the USA and China. According to BP Energy Outlook 2019, India’s energy consumption will jump from the current 6 per cent to 11 per cent in 2040.
It is expected to cross China as the largest energy growth market by 2020.
(With input from agencies)