India’s energy infrastructure will fly high, says Dharmendra

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By Our Correspondent

NEW DELHI: Union Minister for Petroleum, Natural Gas and Steel  Dharmendra Pradhan in a written reply in the Lok Sabha on Monday said that development of India’s energy infrastructure will involve huge investments in oil and gas infrastructure of more than 100 billion dollars including in exploration and production of oil and gas, oil refining, pipelines, city gas distribution networks and LNG terminals. 

Important sectors having thousands of crores of investment potential include, oil and gas exploration and production, gas pipelines infrastructure for connecting national gas grid, city gas distribution networks in the newly authorised geographical areas, LNG terminals, compressed bio-gas plants, capacity addition of refineries, fertiliser plants, petro-chemical parks and ancillary industries and CNG auto sector, Pradhan said.

India is the 3rd largest energy as well as crude oil consumer in the world.  Increasing prosperity, higher living standards and burgeoning middle class are driving energy demand. India’s share in total global primary energy demand is set to double to 11% by 2040. To meet the increased requirement of hydrocarbon fuel, the major strategies adopted include; attracting investment in E&P to enhance domestic oil and gas production, shifting to gas based economy, technological upgradation to meet refinery processes, energy efficiency and productivity, accelerating bio-fuel economy, expanding overseas oil and gas portfolio, diversifying oil and gas supply sources, driving infrastructure spending in oil and gas sector etc. As per BP Energy Outlook, 2019, the gas consumption of India in 2040 is estimated to be 185 billion cubic meters.

Compressed Bio-Gas (CBG) can be produced from biomass and organic waste sources including paddy stubble. Compressed Bio-Gas has properties similar to the commercially available natural gas and can be used as an alternative renewable fuel.

Government of India has launched Sustainable Alternative Towards Affordable Transportation (SATAT) initiative on 1.10.2018 to promote CBG as an alternative, green transport fuel for efficient management of biomass and organic waste. As part of the SATAT scheme, Public Sector Oil Marketing Companies, Gail (India) Limited and Indraprastha Gas Limited had launched Expression of Interest (EoI) for procurement of CBG from the entrepreneurs at an assured price.

Under SATAT initiative, as on 26.11.2019, 441 Letters of Intent has been awarded for production and supply of CBG. So far retail sale of CBG has commenced from two retail outlets.

As per information provided by Petroleum Planning and Analysis Cell (PPAC), approximately 18,646 MMSCM of Natural gas has been produced domestically and approximately 19,031 MMSCM of LNG has been imported in the country during the period April-October, 2019. This gas also caters to demand of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG).

Petroleum and Natural Gas Regulatory Board (PNGRB) has authorized GAIL to develop 2,655 km long Jagadishpur-Haldia-Bokaro-Dhamra Pipeline (JHBDPL) project and approximately 750 km long Barauni – Guwahati pipeline as its integral part which will connect North East region with the National Gas Grid and is at various stages of execution. Indradhanush Gas Grid Limited, a Joint Venture Company (JVC), has been incorporated to develop trunk pipeline connectivity in all North Eastern States. Various pre-project activities like preparation of Detailed Feasibility Report (DFR), Route Survey, Identification of land etc. are being done. With respect of Paradip-Haldia-Barauni Oil pipeline, physical progress of 26.51% has been made as on 1.11.2019.

Petroleum & Natural Gas Regulatory Board (PNGRB) is the authority to grant authorization to the entities for the development of City Gas Distribution (CGD) network in Geographical Areas (GAs) as per PNGRB Act, 2006. PNGRB identifies the GAs for the development of CGD network depending on the natural gas pipeline connectivity/natural gas availability and techno-commercial feasibility. PNGRB has authorized 229 GAs covering 407 districts for development of CGD network across the country.

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