Govt wants to run industrial plants on natural gas, plan to benefit ONGC, OIL

  • The plan is in initial stages and the Centre will soon start reaching out to states to hold discussions in this regard

  • If the plan is implemented, it would prove to be immensely beneficial to state-run Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL)

New Delhi: In line with its vision to push the share of natural gas in India’s energy mix to 15 percent by 2030, the Central government is considering a proposal to run industrial plants across the country on natural gas. According to a news report by Zee Business, the plan is in initial stages and the Centre will soon start reaching out to states to hold discussions in this regard. If the plan is implemented, it would prove to be immensely beneficial to state-run Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), said the report.

The Commission for Air Quality Management in NCR and adjoining areas has already asked industrial units in Delhi to switch to piped natural gas (PNG) by January 31. 

Natural gas to play an important role in energy transition

As India shifts towards non-conventional fuel and sources of energy, natural gas is set to play an important role in the energy transition. The government has already announced its intention to increase the share of natural gas in India’s energy mix to 15 percent by 2030. Even though at the moment, India imports over 50 percent of its natural gas requirements, the government aims to slowly dial down India’s crude oil imports and replace it with natural gas. 

ALSO READ: RIL, BP invite bids for sale of gas produced from KG D6 block

Reliance Industries’ Limited (RIL) and BP’s recently announced the start of natural gas production from the R Cluster, ultra-deep-water gas field in block KG D6 off the east coast of India. RIL and BP are developing three deepwater gas projects in block KG D6 – R Cluster, Satellites Cluster and MJ – which together are expected to meet ~15 percent of India’s gas demand by 2023. Peak gas production from the three fields is expected to be around 30 mmscmd (1 bcf/d) by 2023 which is expected to be about 25 percent of India’s domestic production and will help reduce the country’s dependence on imported gas.

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