The Government has initiated gas pricing reforms to incentivise production of natural gas, the Prime Minister, Dr Manmohan Singh, said. “We are conscious that remunerative energy prices are needed to ensure expanded energy supply,” he said at the 7th Asia Gas Partnership Summit, here on Friday.
However, in a note of caution to the industry, the Prime Minister said that oil and gas are national resources and, therefore, should be within the framework of governmental and regulatory oversight.
“The economic exploitation of these resources should lead to win-win solutions for both the investors as well as the people of India,” he said.
Gas producers of the country, such as Reliance Industries, have been seeking a revision in gas pricing to make it competitive in the market. Currently, natural gas in the country from various sources is sold at $4.2-17/mmBtu (excluding taxes and other charges).
Gas price
The Government is likely to decide by April-end on the price of gas that Reliance Industries and Essar Oil plan to produce from coal seams. However, there is unlikely to be any revision in gas price from Reliance Industries-operated D6 block immediately.
Stating that use of natural gas offers greater supply security through diversification of the energy basket, he said that it also helps in promoting sustainable economic development.
The Prime Minister said that with the Asia-Pacific region, including Australia and West Asia, already emerging a principal source of supply, there is a natural synergy in promoting greater flow of trade, investment, skills and services, across the value chain within the Asian region.
“Indeed, we should move beyond the conventional buyer-seller relationships to more comprehensive gas and energy partnerships in this region,” he said.
GAIL pipeline
The Prime Minister also dedicated to the nation, the 2,200-km Dahej-Vijaipur-Dadri-Bawana-Nangal-Bhatinda cross-country pipeline of GAIL (India) that runs through the North-West corridor of the country.
The pipeline project, with an overall investment of Rs 13,000 crore, covers eight States — Gujarat, Madhya Pradesh, Rajasthan, Uttar Pradesh, Haryana, Delhi (Union Territory), Punjab and Uttarakhand.
The pipeline will not only interconnect the existing network but also meet the demand-supply gap of natural gas in the northern region.