In a significant move towards sustainable energy, the Indian government is actively working to increase the share of natural gas in the country’s energy mix from the current 6.7% to an ambitious 15% by the year 2030. This commitment reflects India’s dedication to cleaner and more environmentally friendly energy sources.
As of now, the government has undertaken several strategic initiatives to boost the utilisation of natural gas across various sectors. One of the key measures is the expansion of the National Gas Grid, which currently boasts an operational length of 24,623 kilometres, with an additional 10,860 kilometres under construction. This expansion is poised to enhance the accessibility and distribution of natural gas across the nation.
The City Gas Distribution (CGD) network is also undergoing a substantial expansion, with plans to cover 300 Geographical Areas (GAs). This expansion project aims to provide approximately 12.50 crore PNG (Piped Natural Gas) connections, establish 17,751 CNG stations, and lay down a pipeline network spanning 5.42 lakh inch-kilometres by 2023. These efforts are crucial in making natural gas more readily available to both urban and rural areas.
To facilitate the import and distribution of natural gas, the government has been actively involved in setting up Liquefied Natural Gas (LNG) Terminals. Currently boasting a capacity of 47.7 Million Metric Tonnes Per Annum (MMTPA), these terminals are slated to increase their capacity to 66.7 MMTPA. This expansion will not only ensure a stable supply but also promote the use of natural gas in various industries.
In line with the push for increased domestic production, India has witnessed a commendable 20% surge in natural gas production. From 28.7 billion cubic meters (BCM) in 2020-21, the production has risen to 34.45 BCM in 2022-23. The government, recognising the importance of domestic production, implemented the Hydrocarbon Exploration and Licensing Policy (HELP) on March 30, 2016. Further policy reforms were announced on February 28, 2019, offering concessional royalty, royalty holidays, relaxed approvals, and reduced revenue shares for basins falling under Category II and III. These incentives are aimed at expediting the monetisation of fields and providing marketing and pricing freedom for natural gas.
