Share of Gas Will Increase in India's Energy Mix

India plans to cut oil imports by 10 percent over next six years by increasing usage of natural gas, country’s oil minister Dharmendra Pradhan said Tuesday.

Speaking at a function in New Delhi, the minister said that recent policy decisions taken by the government would boost natural gas output in the country. India is committed to reduce the carbon footprint by 30-35 percent by the year 2030 and gas would play a very important role, the minister stated. 

Earlier this month, Indian government announced a new hydrocarbon policy. Among the various measures that the nation’s cabinet approved to boost oil and gas production, is that of marketing and pricing freedom for new gas production from deepwater, ultra deepwater and high pressure-high temperature areas. The cabinet also announced a policy for future which provides for a uniform licensing system to cover all hydrocarbons such as oil, gas, coal bed methane, shale gas, shale oil, etc. under a single licensing framework, Hydrocarbon Exploration and Licensing Policy (HELP). The present policy regime for exploration and production of oil and gas, known as New Exploration Licensing Policy (NELP), been in existence for 18 years. Over the years, various problems and issues have arisen.

At the event, the minister said gas is the future fuel and India is taking steps to boost exploration and production. He said the government is working with public sector oil companies to bring in start-up Fund for oil & gas industry which would further boost the innovative ideas in the sector. 

Pradhan called upon Petroleum and Natural Gas Regulatory Board (PNGRB) to play a lead role in the expansion of gas network in the country. He said the government is committed to the balanced growth and for this purpose new pipelines are being laid in the eastern India which will boost the availability of gas in the under-developed parts of the country.