The Business Bytes
TBB BUREAU
BHUBANESWAR, JAN 15, 2024
In a momentous stride towards nurturing a sustainable and efficient energy landscape, the Pradhan Mantri Urja Ganga project, in collaboration with the Indradhanush natural gas pipeline initiative, is revolutionizing access to natural gas in Eastern India. This initiative seamlessly integrates the eastern and north-eastern regions into the national gas grid.
The recently inaugurated LNG terminal at Dhamra in Odisha is strategically positioned to cater to the RLNG demand in the eastern region.
This development not only offers access to cleaner cooking and transportation fuels but also presents a significant opportunity for industries in Bihar, Jharkhand, West Bengal, and Odisha to procure natural gas at competitive prices.
In accordance with Petroleum and Natural Gas Regulatory Board (PNGRB) regulations, customers with a demand exceeding 50,000 Standard Cubic Meters per Day (SCMD) can directly link up with natural gas transmission networks, replacing polluting fuels like oil and coal with natural gas. This shift provides the advantage of sourcing gas directly from the market or gas exchange at competitive prices, contributing to a reduction in carbon footprint and improved air quality, particularly in urban areas with high pollution levels.
To maximize the potential and access to natural gas, platforms like the Indian Gas Exchange (IGX) play a pivotal role by providing a flexible and convenient gas trading platform for customers. Opting for IGX brings forth benefits such as transparent pricing, a dynamic and competitive market environment, 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, thereby contributing to a reduction in carbon footprint and fostering a cleaner, sustainable energy future.
India’s commitment to cleaner energy is palpable as it aims for a 15% share of natural gas in the energy mix by 2030, a substantial increase from the current 6%. Despite infrastructure challenges, recent significant investments have expanded the natural gas transmission network to 22,000 kilometres, raised LNG regasification capacity to 47.7 million metric tonnes per annum (MMTPA), and achieved nearly complete coverage of city gas distribution authorizations (98% nationwide). This underscores India’s unwavering dedication to cultivating a sustainable and diversified energy portfolio.
India’s natural gas market is undergoing a transformation propelled by infrastructure development, policy support, increasing demand, and a steadfast focus on environmental sustainability. The continued expansion into new markets and the development of existing gas markets will not only diversify the energy mix but also contribute to India’s journey toward a cleaner and more sustainable energy future. Gas exchange stands out as one of the key enablers in achieving the objectives of market development and growth.
