Gas-based power plants in India are currently operating at a low Plant Load Factor (PLF). In a move to enhance the availability of natural gas for power generation, the Government has placed Liquefied Natural Gas (LNG) under the Open General License (OGL) category. This allows power plants to import LNG based on their requirements through mutually agreed commercial terms with suppliers.
During the period of April 2024 to January 2025, power plants in India imported approximately 9.58 million metric standard cubic meters per day (MMSCMD) of natural gas. The Government has also introduced various schemes for the competitive procurement of power from gas-based power plants, particularly during peak demand periods.
To increase the share of natural gas in the country’s energy mix, the Government has undertaken several initiatives:
- These include the expansion of the National Gas Grid Pipeline and the City Gas Distribution (CGD) network
- The establishment of additional LNG terminals
- The prioritization of domestic gas allocation for Compressed Natural Gas (CNG) in transport and Piped Natural Gas (PNG) for households.
- Additionally, the Government has allowed marketing and pricing freedom with a ceiling price for gas produced from high-pressure and high-temperature areas, deep-water and ultra-deep-water fields, and coal seams.
Further, the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative has been launched to promote the use of Bio-CNG as an eco-friendly fuel alternative.
The information was provided by Minister of State for Petroleum and Natural Gas, Suresh Gopi, in a written reply to the Rajya Sabha on Monday.
