New Delhi (NVI): Union Minister of
Petroleum and Natural Gas and Steel Dharmendra Pradhan today said the future of India’s energy sector will be noticeably different from its current avatar and will be driven by new technology and business models.
In his inaugural address at the 10th World PetroCoal Congress here, he said India is expected to become the largest energy consumer surpassing US and China, in the next decade or so.
“We are encouraging our oil & gas companies to develop extensive and qualitative engagement with Indian technology and research institutions of excellence,” he said.
“I am happy that seven Indian oil and gas PSUs joined with IIT Bombay last year to set up a Centre of Excellence in oil, gas and energy,” he added.
“Energy transition currently underway can become more manageable only if proactive measures are set in motion. Digital technologies are transforming the energy sector in a profound manner,” Pradhan said.
“Industrial Revolution 4.0 is truly at our door step. Indian energy companies will have to quickly adopt and adapt these technologies at a faster pace,” he said.
“We need to create more innovative platforms in India for convergence of leading global technology leaders in the energy sector,” he added.
Pradhan stressed on the need to achieve the twin objectives of more energy availability at an affordable price and less carbon through a healthy mix of all commercially-viable energy sources.
He said that our target to transform India to a USD 5 trillion economy by 2024, requires a gradual and measured energy transition by deploying all sources of energy.
“The contours of India’s energy transition are also changing fast in sync with global challenges and opportunities,” he said.
“Winds of change are evident in the global energy arena. Energy sources, energy supply and energy consumption patterns are changing rapidly. In our pursuit to navigate energy transition, it is natural that we will take advantage of unique synergies that exist within the country,” he said.
“Equally, our efforts will be guided by our global commitments be it under UN Sustainable Development Goals (SDGs) of 2030 or those under Paris Climate Summit. ”, he said.
The government’s approach to energy policy is based on energy access, energy sustainability, energy affordability, energy efficiency and energy security. All these five enablers will deliver energy justice to our people.
The Minister advocated the need to move away from the crude price as the basis for determining the LNG price.
“Global gas production and markets have witnessed significant restructuring during the last few years. Global supply of LNG is increasing at a rapid pace, and globally LNG prices are coming down significantly,” he said.
“It is time for our companies to take a relook at the term-contracts with major LNG suppliers. I also believe that the time has come for changing the pricing formulae for purchase of LNG by India,” he added.
Talking about the initiatives in transforming India into a gas-based economy, Pradhan said I consider that the biggest game changer to bring about greater environmental sustainability and flexibility in India’s energy system is through rapid deployment of natural gas.
“It would serve as a transition fuel in our country. Our government is working towards increasing the share of gas from 6.2% to 15% in the energy mix by 2030,” he said.
Pradhan also spoke about estimated investment of 60 billion US dollars being lined up in the sector, developing a ‘one Nation one Gas Grid’, cross-country pipelines, rapid expansion of the LNG infrastructure in the country, City Gas Distribution (CGD) network expanding to cover more than 70 % of the country’s population, covering 407 districts spread across 28 States and Union Territories.
“We are actively encouraging use of LNG, among others, for long-haul trucking along expressways, industrial corridors and inside mining areas, marine applications. We are also making natural gas easily available at doorsteps for users through mobile dispensing.” he added.
Describing alternative fuels like ethanol and bio-diesel being on high priority in energy mix, he said “We are well on our way to meet the target of 20% blending of ethanol in petrol and 5% blending of bio-diesel in diesel by 2030. We are advancing our collaboration with countries such as Brazil and US to improve blending technologies in transport sector.”
Pradhan said that India is now leading the global movement in embracing renewable energy sources. The country has an ambitious plan to increase renewable energy capacity to over 175 GW by 2022 and up to 450 GW subsequently.
“I wish to emphasize that India needs all kinds of transportation solutions – cleaner diesel and petrol, CNG, LNG, bio fuels and Electric Vehicles,” he added.
