India moving towards gas-based economy from import dependent crude based economy: Hardeep Puri
Nov 11, 2024
New Delhi [India], November 11 : Union Minister Hardeep Singh Puri on Monday highlighted that India is moving towards a gas-based economy from the imported crude based economy for its energy requirements.
The minister stated that in recent years the government has taken transformative steps to increase domestic gas production and reduce India's reliance on imports. Currently, India imports about 50 per cent of its natural gas needs, but with new investments in the upstream sector, this dependence is expected to come down over time.
He also added that by encouraging domestic producers to invest in gas production, the government is not only creating a stronger energy foundation within India but also supporting the nation's economic and environmental goals.
"India is well on its way towards transforming into a gas-based economy with key steps taken under the leadership of PM @narendramodiJi... Since we import about 50% of our natural gas requirement, enhanced gas production within the country will reduce our import dependence" said Puri in a social media post.
The minister also noted that gas production in India saw an 18 per cent increase last year, a promising sign of growth. Forecasts show production volumes reaching 38.2 billion cubic meters (BCM) in 2024, 40.9 BCM in 2025, and 45.3 BCM by 2026.
This steady rise in production will support India's journey towards becoming a gas-based economy, ensuring greater energy security and stability.
He noted that one of the key reforms implemented by the government includes an incentive for gas producers from new wells in nomination fields, which are eligible to receive 20 per cent higher prices.
This policy aims to attract greater investment in India's exploration and production (E&P) sector, boosting confidence among investors and encouraging them to take an active role in India's energy transition.
He said "These reforms will also incentivize investment in India's E&P sector by ensuring that gas production from new wells of nomination fields will receive 20 per cent higher prices".
With these policies, India is working towards a cleaner and more energy-efficient future, prioritizing domestic gas production and reducing the environmental impact associated with high import dependence.
