New Delhi: Stakeholders in the oil and gas industry believe India will need to tap into all energy sources to stay on its growth trajectory. This seemed to be the unanimous opinion of the domestic oil and gas industry experts. We also need a solid infrastructure to support this ambition.
Minister for Oil and Natural Gas Haddeep Singh Puri said the length of India’s gas pipeline infrastructure to support the gas-based economy while addressing the inaugural session of ET EnergyWorld’s annual gas conclave on Monday. has now increased to 22,000 km and is on target. In the next 5-6 years he plans to reach 35,000 km of pipelines his network.
The government is taking steps to create a liberal gas market regime and develop the country as a hub for gas trading, he added, adding that promoting a gas-based economy could bring India $60 billion in the sector. He outlined that the investment of
“No economy can grow without energy. We import 78% of our total oil and gas demand. To achieve this, we need a robust infrastructure,” said ET EnergyWorld Gas Annual Gas. Speaking at Conclave, Pankaj Sharma, Additional Director of the Ministry of Petroleum and Natural Gas said:
India is on a growth trajectory and needs access to all energy sources to continue its journey.
AG&P Pratham MD CEO Abhilesh Gupta said at the conclave:
His view was echoed by Ajay Sambrani, Managing Director of Tubacex Asia Pacific.
India has significant shale gas reserves, but gas serves as a bridge fuel to a net-zero economy.
Ashish Agarwal, Managing Director and Chief Executive Officer of Seros Energy Pvt Ltd, said conventional and non-conventional energy sources will be utilized together, and conventional energy sources will coexist for at least the next 40 years. Then added:
As far as city gas pipeline prices are concerned, they are expected to go north for some time to come.
“[Prices]won’t go down for at least two years,” Sambrani said.
According to Raman Chadha, Chief Executive Officer of GAIL Gas Ltd., gas pipelines were previously limited to states in the western region, but now efforts are being made to strengthen the states in the eastern and northeastern regions. It is
Dilip Pattanaik, Executive Director of Natural Gas, Hindustan Petroleum Corporation Ltd, said:
The city gas distribution network is expanding and presents a great opportunity for companies in the sector.
“Rajasthan’s CGD policy is very progressive and we also expect good policies from Assam,” said Suresh Manglani, Chief Executive Officer of Adani Gas.
The country’s current city gas pipeline infrastructure is 21,000 km and the government plans to expand it to 34,000 km in the next 3-5 years, with most projects underway.
“We are expanding our CGD network across the country,” said SK Jha, Indian Oil Executive Director and Head of City Gas Distribution.
“We need to ensure that consumers get the best prices for CNG and PNG,” said Mangrani, in order to promote CGD adoption.
In a discussion of India’s exploration and production potential and its future acceleration, companies said they were bullish on the segment’s growth.
Pankaj Kalla, Chief Executive Officer of Essar Oil & Gas Exploration & Production Company, said:
On the issue affecting E&P companies, some say it is access to capital.
Access to capital is a challenge for small independent exploration and production companies, according to Elango Pandarinathan, Managing Director of Hindustan Oil Exploration Company Ltd.
Manas Kumar Sharma, Director (Exploration and Development) at Oil India, said the company has expanded aggressively, increasing its exploration area by a factor of seven, so the growth trajectory looks bright.
C Laxma Reddy, Deputy Director (Exploration), Directorate General of Hydrocarbons, said:
“We have access to operators, both domestic and global exploration companies, to help solve problems,” he added.
Elango Pandarinathan, managing director of Hindustan Oil Exploration Company Ltd, said despite government intervention, the exploration and production sector has not seen huge amounts of FDI, apart from BP’s involvement.
“We invite global companies to come explore and invest,” said Reddy.
A panel discussion on critical infrastructure related to the capital investment planning session had a lively discussion on the important theme of the role of robust infrastructure in city gas supply.
Satinder Pal Singh, chief executive of Adani Total Private Limited, said the next few years will see volatility in LNG and gas prices.
“The government needs to ensure that city gas distributors can provide gas at affordable rates and make reasonable profits,” said former PNGRB chairman and ONGC former chairman and managing director. One DK Sarraf said.
Salaf said underground natural gas strategic storage facilities are needed to insulate against price fluctuations.
“A good infrastructure requires significant investment and a mature infrastructure will emerge in the near future,” said Ash Singhal, Corporate Strategy and Risk Management, GAIL (India) Ltd.
“If you rely on long-term gas contracts, the volatility cannot be too high. Long-term contracts should have review clauses every three to five years,” said Vinod Kumar, director (finance) at Petronet LNG. Mishra emphasized.
