India moving towards gas-based economy: Pradhan
Published: Dec 24, 2020
By TIOLCORPLAWS News Service
NEW DELHI, DEC 24, 2020: INDIA will support the world's move to increasing the share of natural gas as a source of energy in the next few decades, said Minister of Petroleum and Natural Gas Mr Dharmendra Pradhan on Wednesday.
"We are accelerating our efforts to move towards a gas-based economy. We are moving rapidly towards cleaner use of fossil fuels, particularly petroleum and coal. A greater reliance is on domestic sources to drive biofuels," said the minister during his interactions with the Stanford Alumni Group on "The Future of Energy in India."
"We are working towards achieving the renewables target of 450 GW by 2030, increasing the contribution of electricity to de-carbonize mobility, moving into the emerging fuels, including hydrogen, and emphasising on digital innovation across energy systems," he added.
Mr Pradhan said that India is seeking robust energy security as the country rapidly develops and as a result, expands its energy consumption.
"India is currently using only 6% of the world's primary energy while the per capita consumption of energy is still one-third of the global average. This, however, is rapidly changing," he noted.
He quoted recently released reports that estimate the world's total primary energy demand would increase at less than 1% per annum till 2040, compared to India's 3%. Meanwhile, oil demand is forecasted to plateau around 2030 for the world while the same would happen for India in 2035.
Natural gas would increase its share in the world energy mix replacing oil and coal. This energy growth would be mainly supported by India and other countries in Asia, he added.
Mr Pradhan said that India took leadership in pledging to adapt energy efficiency and move towards green power, increasing the renewable power portfolio from 32 GW to almost 100 GW.
He said India is working towards a "one - nation-one - gas-grid" structure to enhance In order to enhance energy availability and accessibility. They will add approximately 17,000 km of gas pipelines in the eastern and northeastern state.
Further, with the "City Gas Distribution" networks nearing completion, more than 70% of India's population will have access to clean and affordable natural gas.
"We have pushed up the consumption levels of gas hard - as a result, we see rapid penetration and expansion of natural gas in the country. We believe that the proactive model that we have adopted is suited for India's present development journey," said Mr Pradhan.
Describing India as an attractive investment destination for the energy sector, he said that several reforms have enhanced the Ease of Doing Business and can be seen by the government's commitment.
"A testament to the same is the projected investment of USD143 billion in the Indian oil and gas sector, of which, USD56 billion is in Exploration and Production (E&P), USD66 billion in gas and USD20 billion in refining," the minister said.
"We are keen to partner with global companies and investors for further strengthening of energy infrastructure in the country," Mr Pradhan said.
