The Indian government is set to allocate approximately 60 billion USD toward the development of gas infrastructure by 2024. The aim behind this substantial investment is to increase the share of gas in the country’s energy mix from its current 6% to a substantial 15% by 2030.
Details of the Proposed Infrastructure Plan
The upcoming infrastructure blueprint includes pipelines, LNG (Liquefied Natural Gas) terminals, and CGD (City Gas Distribution) networks. The plan envisages an additional 14,300 km of pipelines to complete the National Gas Grid, which is currently in various stages of development. Presently, the country has six operational LNG regasification terminals, with plans to establish 1,000 LNG fuel stations nationwide. Additionally, the reach of CGD projects is expected to extend to 232 geographical areas across 400 districts, potentially covering about 53% of the country’s geography and 70% of its population.
National Gas Grid: Past and Present
The concept of a National Gas Grid in India was conceptualized in 2000 and since then, more than 16,000 km of gas network has been established. Recent initiatives include the Pradhan Mantri Urja Ganga Project, aimed at meeting the energy requirements of Uttar Pradesh, Bihar, Jharkhand, Odisha, and West Bengal. Another major initiative is North East Region (NER) Gas Grid, planned to pass through Assam, Sikkim, Mizoram, Manipur, Arunachal Pradesh, Tripura, Nagaland, and Meghalaya in a phased manner.
The Role of City Gas Distribution Network
Under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act 2006, PNGRB grants authorization to entities for developing a CGD network within a specific geographical area of the country. The CGD sector comprises four distinct segments – Compressed Natural Gas (CNG) largely used as auto-fuel, and Piped Natural Gas (PNG) used across domestic, commercial, and industrial segments.
Government Initiatives Promoting Gas Usage
The government has undertaken numerous initiatives to promote the use of gas in the country. These include the Natural Gas Marketing Reforms, Indian Gas Exchange, Pradhan Mantri Ujjwala Yojana, Gas4India Campaign, Hydrocarbon Exploration and Licensing Policy (HELP), Promotion to Compressed Natural Gas-based Public Transport, and Transnational Gas Pipelines, all aiding in creating awareness and increasing access to natural gas.
Natural Gas: Origin, Availability, and Distribution
Natural Gas is primarily extracted from petroleum deposits deep beneath the earth, occurring above the layer of crude oil due to its lighter nature. In India, significant natural gas resources exist in Jaisalmer, Krishna Godavari delta, Tripura, and some offshore areas in Mumbai. The Gas Authority of India Limited, established in 1984, undertakes the task of transporting and marketing natural gas.
The Need for a Gas-based Economy
Switching to natural gas offers many benefits. It is energy efficient, cleaner, is associated with lower emissions, and has diverse applications. Furthermore, globally, electricity produced by natural gas has surpassed that produced by coal for the first time, as per a report from the International Energy Agency, indicating the effectiveness of natural gas as an energy source.