India to Reduce Natural Gas Imports with New Investment-Driven Production Reforms: Minister Hardeep Singh Puri
Updated: Nov 11, 2024 05:17:21pm
India to Reduce Natural Gas Imports with New Investment-Driven Production Reforms: Minister Hardeep Singh Puri
New Delhi, Nov 11 (KNN) In a significant stride towards energy independence, Union Minister Hardeep Singh Puri announced on Monday that India is gradually transitioning to a gas-based economy, reducing its heavy reliance on imported crude oil.
This shift, driven by transformative government policies, underscores India’s commitment to bolstering domestic natural gas production and achieving greater energy security.
Puri noted that, currently, India imports nearly 50 per cent of its natural gas requirements, yet strategic investments in domestic gas production are expected to decrease this dependency over time.
"India is well on its way towards transforming into a gas-based economy," Puri shared on social media, emphasising the government’s focus on energy reforms under Prime Minister Narendra Modi’s leadership.
This shift aligns with India’s broader economic and environmental goals by reducing both costs and carbon emissions associated with imported fossil fuels.
In 2023, India’s gas production registered an 18% increase, a positive trend that indicates the growing strength of domestic energy resources.
Projections suggest a continued rise, with gas production expected to reach 38.2 billion cubic meters (BCM) in 2024, 40.9 BCM in 2025, and 45.3 BCM by 2026. These production goals are designed to support India’s energy transition by ensuring a stable, local supply of natural gas.
One of the central policy shifts supporting this transition is the government’s recent incentive structure for gas producers. Under this policy, producers from new wells in nomination fields are eligible for a 20% premium on gas prices.
Puri highlighted this as a crucial incentive to attract investment in India’s exploration and production (E&P) sector. "These reforms incentivize investment by ensuring gas production from new wells will receive 20% higher prices," he noted, enhancing investor confidence in India’s energy market.
With these ambitious policies, India is laying the groundwork for a cleaner, more energy-efficient future, promoting domestic gas production and aligning with global environmental standards.
As India moves closer to its gas-based economy vision, it is setting a powerful example of sustainable growth in the global energy landscape.
(KNN Bureau)