Great Business opportunity for Indian Industry to participate in making Gas Based Economy

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New Delhi: The Indian companies need to understand the opportunity and demand in the gas based manufacturing sector and utilize it to get benefit from the same, deliberated Mr. Tarun Kapoor, Secretary, Ministry of Petroleum & Natural Gas (MOPnG) in the session of ‘Virtual Natural Gas Conclave 2020’ organized by PHD Chamber of Commerce and Industry.

Talking about policy and reforms, Mr. Kapoor mentioned that we are in the process of allowing production to sell gas in form of auctions. He also mentioned that the ministry is working on Transport System Operation so that the transport system becomes more independent and systematic for energy consumption. Gas Exchange will be a reality stone and, stone changes are taking place.

Mr. V.K Mishra, Director of Finance, Petronet LNG discussed that our energy has to be growth-centric at the same time environmentally conscious. Looking at the growth and development in this sector, we are sure that will be an increase in energy capacity and consumption in the next few years. He emphasized that we need to increase our energy consumption in the country for which we need to take initiatives so that we can penetrate gas in all corners of the country and look at small sale energy.

Talking about the environment and cost benefits of LNG, he mentioned that natural gas should come under GST that will benefit the MSMEs and consumers at large.

Mr. Rajeev Kumar Mathur, Executive Director Corp affairs/AM GAIL discussed the need to increase per capita energy consumption that will help India to achieve become a gas-based economy. He mentioned that there are opportunities for equipment manufacturers, suppliers, and ventures. He suggested that there should be an increase in the LNG stations across the country so that the transport sector can increase its consumption.

Talking about the gas exchange, he discussed that this will help to offer more business and consumption opportunities to industry leaders and the population.

Mr. A K Jana, Managing Director, Indraprastha Gas Limited mentioned that targeting the transport system will help to increase the consumption of energy, and strengthing infrastructure will help to increase energy production. He also emphasized replacing LNG with many energy resources that will help to increase the energy mix.

Mr. Nakul Raheja, Country Head, Shell Energy India deliberated that we need to secure more energy at the same time look at the consumption of cleaner energy to tackle climate change. He mentioned that gas can make a difference in climate issues and needs to focus to strengthen its growth in the sectors like power, industries, and transportation. He also mentioned that gas plants are quicker and cheaper to build and globally, gas plays a pivotal part in the power mix. He talked about the flexibility of gas in the power sectors and the need to look for more gas applications.

Talking about the gas policy, he mentioned that it needs to be skill enabled, supply enabled, cost-effective, and have marketing and pricing freedom.

Mr. Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry in his presidential address deliberated about India’s mission to emerge as one of the primary drivers of growth in natural gas demand in Asia, despite the pressing Covid-19 challenges, owing to a combination of Government’s pursuance of consistent policies and initiatives, as well as fast-developing pipeline infrastructure.

He lauded the initiatives undertaken by the Ministry of Petroleum & Natural Gas, Govt of India to ensure energy distribution for all Indians at the same time make it affordable, sustainable, efficient, secure and help progressively moving towards marketing and pricing freedom regime in the country. He mentioned that Pradhan Mantri Ujjwala Yojana (PMUY) has driven socio-economic change and women empowerment in India, and has doubled the number of LPG connections in the country. SATAT (Sustainable Alternative Towards Affordable Transportation) initiative is aimed at providing a Sustainable Alternative Towards Affordable Transportation as a developmental effort that would benefit both vehicle-users as well as farmers and entrepreneurs.

Talking about the expansion in the Indian Gas grid, he discussed its expansion in the eastern and north-eastern parts of the country via the Government’s supports of capital grants under the Indradhanush North Eastern Gas Grid projects.

Mr. Aggarwal mentioned that increasing domestic gas production has been a key government priority, as output has unexpectedly come in below forecast levels over the past few years. Coverage of City Gas projects is being expanded to many geographical Areas with the potential to cover a major portion of the population. The government has also chalked out plans for use of LNG in long-haul transportation.

While discussing the tariff structure, he talked about the benefits of the new tariff structure that will help in creating a single gas market by attracting investment to complete Gas Grid as well as ensuring equitable access to natural gas and making gas affordable across the country.

Mr. Aggarwal highlighted that Power, Fertilizer, Industrial, and City Gas Distribution segments are expected to contribute to the bulk of future growth of natural gas demand in India.

 

Mr. Pawan Kumar Tibrawala, Co-Chairman, Hydrocarbon Committee, PHD Chamber of Commerce and Industry delivered a formal vote of thanks to all the delegates and participants.

 

The session was moderated by Dr. Ranjeet Mehta, Principal Director, PHD Chamber of Commerce and Industry, and was attended by many industry stalwarts pan-India.

 

 

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