The Business Bytes
TBB BUREAU
BHUBANESWAR, JANUARY 15, 2024
In a significant leap toward constructing a sustainable energy landscape, the Pradhan Mantri Urja Ganga project, alongside the Indradhanush natural gas pipeline initiative, is facilitating seamless access to natural gas in Eastern India. This initiative is effectively integrating the eastern and north-eastern regions into the national gas grid.
The recently inaugurated LNG terminal at Dhamra in Odisha strategically caters to the RLNG demand in the eastern region. This advancement not only opens avenues for cleaner cooking and transportation fuels but also provides a golden opportunity for industries in Bihar, Jharkhand, West Bengal, and Odisha to procure natural gas competitively.
Adhering to PNGRB regulations, customers with a demand exceeding 50,000 SCMD can directly link to natural gas transmission networks, replacing environmentally harmful fuels like oil and coal with cleaner natural gas. These customers benefit from sourcing gas directly from the market or gas exchange at competitive prices. The transition to natural gas holds the potential to significantly reduce India’s carbon footprint and enhance air quality, particularly in urban areas plagued by high pollution levels.
To further optimize the potential and accessibility of natural gas, platforms like the Indian Gas Exchange (IGX) play a pivotal role, offering a flexible and convenient trading platform. Choosing IGX provides advantages such as transparent pricing, a dynamic and competitive market environment with multiple sellers and buyers, flexible contract durations, efficient market access, and an expanded market reach. By embracing the competitive pricing and flexibility in gas sourcing offered by IGX, industries in Eastern India can seamlessly transition to natural gas, contributing to a reduced carbon footprint and fostering a cleaner, sustainable energy future.
India’s commitment to cleaner energy is evident as it aims for a 15 percent share of natural gas in the energy mix by 2030, a significant increase from the current 6 percent. Despite infrastructure challenges, recent substantial investments have expanded the natural gas transmission network to 22,000 kilometres, increased LNG regasification capacity to 47.7 MMTPA, and achieved almost complete coverage of city gas distribution authorizations (98 percent nationwide). This underscores India’s dedication to cultivating a sustainable and diversified energy portfolio.
The natural gas market in India is undergoing a transformative phase driven by infrastructure development, policy support, rising demand, and a focus on environmental sustainability. The ongoing expansion into new markets and the development of existing gas markets will not only diversify the energy mix but also contribute significantly to India’s journey toward a cleaner and more sustainable energy future. Gas exchange stands out as a key enabler in achieving the objectives of market development and growth.
