Future of India’s energy sector will be driven by new technology & business models : Pradhan

Speed Post News Network

New Delhi : Petroleum & Natural Gas and Steel Minister Dharmendra Pradhan on February 15, 2020, said that future of India’s energy sector will be noticeably different from its current avatar, to be driven by new technology and business models.

In his inaugural address at the 10th World PetroCoal Congress here, Pradhan said, “ We are encouraging our oil & gas companies to develop extensive and qualitative engagement with Indian technology and research institutions of excellence. I am happy that seven Indian oil & gas PSUs joined with IIT Bombay last year to set up a Centre of Excellence in oil, gas and energy. Industrial Revolution 4.0 is truly at our doorstep. We need to create more innovative platforms in India for convergence of leading global technology leaders in the energy sector.”

Pradhan stressed on the need to achieve the twin objectives of more energy availability at an affordable price and less carbon through a healthy mix of all commercially-viable energy sources. He said that our target to transform India to a USD 5 trillion economy by 2024, requires a gradual and measured energy transition by deploying all sources of energy.

He said that the contours of India’s energy transition are also changing fast in sync with global challenges and opportunities. “Winds of change are evident in the global energy arena. In our pursuit to navigate energy transition, it is natural that we will take advantage of unique synergies that exist within the country. Equally, our efforts will be guided by our global commitments be it under UN Sustainable Development Goals (SDGs) of 2030 or those under Paris Climate Summit,” he said, according to a PIB release.

The Minister advocated the need to move away from the crude price as the basis for determining the LNG price.  He said, “Global gas production and markets have witnessed significant restructuring during the last few years. Global supply of LNG is increasing at a rapid pace, and globally LNG prices are coming down significantly. It is time for our companies to take a relook at the term-contracts with major LNG suppliers. I also believe that the time has come for changing the pricing formulae for purchase of LNG by India.”   He said that India is expected to become the largest energy consumer surpassing US and China, in the next decade or so.

Talking about the initiatives in transforming India into a gas-based economy, Pradhan said “I consider that the biggest game changer to bring about greater environmental sustainability and flexibility in India’s energy system is through rapid deployment of natural gas. Our Government is working towards increasing the share of gas from 6.2% to 15% in the energy mix by 2030.”

Pradhan also spoke about estimated investment of 60 billion US dollars being lined up in the sector, developing a ‘one Nation one Gas Grid’, cross-country pipelines, rapid expansion of the LNG infrastructure in the country, City Gas Distribution (CGD) network expanding to cover more than 70 % of the country’s population covering 407 districts spread across 28 States and Union Territories.

“We are actively encouraging use of LNG, among others, for long-haul trucking along expressways, industrial corridors and inside mining areas, marine applications.  We are also making natural gas easily available at doorsteps for users through mobile dispensing,” he added.

In the last five years, the acreage under exploration has increased from 90,000 Sq km in 2014 to 2,27,000 Sq km in  the end of 2019, Pradhan said.