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The present natural gas consumption by India’s city gas distribution (CGD) network is around 35 million standard cubic meters per day (MSCMD), which is expected to rise to 150 MSCMD by 2028.
Petroleum and Natural Gas Regulatory Board (PNGRB) Member Gajendra Singh said that out of the total 300 geographical areas (GAs) across the country, industrial consumers are procuring gas in 276 GAs.
He was speaking at an event, where Oil Minister H S Puri launched the 12th CGD bidding round, which aims to establish natural gas infrastructure in the north-eastern states (except Mizoram) and union territories of Jammu & Kashmir and Ladakh.
Industrial usage
The maximum is going to compressed natural gas (CNG) and industrial customers. Around 8-10 MSCMD is going to industrial (small industries) and commercial (hotels, etc) customers, Singh added.
Asked about the growth of the natural gas economy in the country, Singh said : “CGD network distribution is now connecting all demand centres, which are there in the GAs. For example, Indraprastha Gas (IGL) is currently taking 8-9 MSCMD and is a big anchor customer. Similarly, Mahanagar Gas (MGL) is taking 6 MSCMD. The gestation period is big. Whenever the CGD entities and GAs mature, they will draw more gas. Currently, the consumption is 35 MSCMD. We are seeing that by 2028, it is going to be around 150 MSCMD and that is the kind of requirement that will be there.”
Gas share in energy mix
When asked about the time period it will take India to increase the share of natural gas in the energy mix from 5.8 per cent, at present, to 15 per cent, Puri said it will be by 2030.
“I would say 2030 is a reasonable timeframe . It may happen earlier also,” he added.
On the stagnation in the growth of share of gas in the energy mix, Puri said successive governments set targets in order to be able to provide a roadmap at that point of time to where they want to go. Energy is not a situation where there is a low hanging fruit waiting to be plucked-off and put into a basket and say that one has reached, he added.
“For instance, sometimes you barely have to set a target and it takes off. But in order to meet any target in the energy sector whether it is E&P, you need to take the whole ecosystem. You need to revise,” Puri added.
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