Scenario of Natural Gas in India
Natural Gas Production:
India has significant reserves of natural gas, with the majority located offshore in the Krishna-Godavari basin, the Mumbai offshore basin, and the Cauvery basin. The country's natural gas production has been steadily increasing in recent years, with the government's focus on increasing domestic production to reduce reliance on imports.
Natural Gas Consumption:
Natural gas consumption in India is growing rapidly, driven by increasing demand from the power sector, fertilizers, and city gas distribution. However, natural gas still accounts for a relatively small share of the country's overall energy consumption, with coal and oil being the dominant energy sources.
Infrastructure:
India has an extensive natural gas pipeline network, with around 16,000 km of pipelines currently in operation. The country has also been expanding its liquefied natural gas (LNG) import capacity, with several LNG terminals now operational.
Policy Support:
The Indian government has been implementing various policy measures to promote the use of natural gas in the country. These include measures such as providing incentives for exploration and production, promoting the use of natural gas in the transportation sector, and expanding the city gas distribution network.
Power Sector:
The power sector is the largest consumer of natural gas in India, accounting for around 45% of the country's natural gas consumption. Natural gas is used mainly for power generation in gas-based power plants, which are typically more efficient and cleaner than coal-based power plants. The government has been promoting the use of natural gas in the power sector to reduce greenhouse gas emissions and improve air quality.
City Gas Distribution:
India has been expanding its city gas distribution (CGD) network, which delivers natural gas to households, commercial establishments, and industrial units in cities and towns. The government has set a target to expand the CGD network to cover 500 districts across the country. The expansion of the CGD network is expected to boost natural gas consumption in India, particularly in the transport and industrial sectors.
Import:
India is a significant importer of liquefied Natural gas (LNG), with the majority of imports coming from Qatar, Australia, and United States, and Russia. The country has been expanding of LNG import capacity, with several new terminals under construction. The expansion of LNG imports is expected to help meet growing natural gas demand in the country.
Natural Gas Vehicles:
The Indian government has been promoting the use of natural gas as a transportation fuel, particularly for heavy-duty vehicles such as buses and trucks. Natural gas vehicles (NGVs) are considered more environmentally friendly than diesel vehicles, as they emit lower levels of particulate matter and greenhouse gases. The government has set a target to increase the share of natural gas in the transport sector to 15% by 2030.
Renewable Natural Gas:
India is also exploring the use of renewable natural gas (RNG), which is produced from organic waste such as agricultural residue, municipal solid waste, and sewage sludge. RNG can be used as a fuel in the transportation sector and can help reduce greenhouse gas emissions. The government has set a target to produce 15 million tonnes of RNG by 2023.
