In the pursuit of increasing India’s natural gas share to 15% of the total energy mix by 2030, industry leaders convened at the India Energy Week 2024 in Goa, highlighting the critical importance of affordable pricing and synchronized infrastructure in the supply chain.
Akshay Kumar Singh, MD & CEO of Petronet LNG, underscored the necessity of pricing calibration to incentivize consumers to transition to cleaner fossil fuels. Singh emphasized that unaffordable prices could deter users from adopting LNG, potentially hindering the nation’s energy transition goals.
Singh outlined the potential for LNG to replace a significant portion of imported crude oil, stressing that LNG adoption could contribute to reducing the country’s reliance on imported energy sources. He also highlighted LNG’s versatility, noting its potential to replace a substantial portion of diesel used in transportation, thereby increasing the share of cleaner fuel in India’s energy mix.
Government intervention was identified as crucial by Singh, particularly in terms of adopting concessional taxation for LNG, to facilitate its widespread adoption and support the transition to a gas-based economy.
Sukhmal Jain, Director (Marketing) and member of the Board of Directors at BPCL, echoed the sentiment, emphasizing the necessity of natural gas adoption for India to align with developed countries. Jain emphasized the need for alignment in cost, supply efficiency, and taxation to promote natural gas usage effectively.
Andrew Barry, Chairman of ExxonMobil LNG Market Development and Vice President of Global LNG Marketing at ExxonMobil Oil & Gas Company, highlighted LNG’s compatibility with renewable energy sources. Barry emphasized LNG’s role as a reliable partner for renewables, addressing intermittency issues inherent in solar, wind, and hydro energy.
However, despite the promising potential of LNG, Barry pointed out the challenges associated with the cost of building LNG production and transmission infrastructure, underscoring the need for concerted efforts to overcome these hurdles.
As India strives to achieve its ambitious targets for natural gas usage, industry stakeholders continue to emphasize the importance of addressing pricing concerns and ensuring the development of robust infrastructure to support widespread LNG adoption.
The discussions at the India Energy Week 2024 underscore the collective commitment of industry leaders towards promoting sustainable energy solutions and advancing India’s energy transition agenda.
