FUELING EASTERN INDIA’S GROWTH WITH COMPETITIVE GAS SOURCING VIA EXCHANGES

• Government initiatives and substantial investments in natural gas infrastructure lay the groundwork for Eastern India’s seamless integration into the national gas grid.


Bhubaneshwar: In a landmark stride towards building sustainable and efficient energy landscape, the Pradhan Mantri Urja Ganga project, in conjunction with Indradhanush natural gas pipeline initiative, is catalysing the access to natural gas in Eastern India and is seamlessly integrating eastern and north-eastern region into the national gas grid.

The recently commissioned LNG terminal at Dhamra in Odisha, is strategically located to meet the RLNG demand in the eastern region. This development not only opens avenues for access to cleaner cooking and transportation fuels but also presents a significant opportunity for industries in Bihar, Jharkhand, West Bengal, and Odisha to procure natural gas at competitive prices.

As per PNGRB regulations customers having demand above 50,000 SCMD can directly connect to natural gas transmission networks and replace the polluting fuels like oil and coal with natural gas. Such customers enjoy the benefits of sourcing gas directly from the market/ gas exchange at competitive prices. Transitioning to natural gas can help India reduce its carbon footprint and improve air quality, especially in urban areas with high pollution levels.

To further maximise the potential and access to natural gas, platforms like the Indian Gas Exchange (IGX) play a pivotal role in providing a flexible and convenient platform for gas trading for its customers. Opting for IGX brings forth advantages such as transparent pricing, a dynamic and competitive market environment with multiple sellers and buyers, flexible contract durations, efficient market access, and an expanded market reach. By embracing the competitive pricing and flexibility in gas sourcing offered by IGX, industries in Eastern India can seamlessly transition to natural gas, thereby contributing to a reduction in carbon footprint and fostering a cleaner, sustainable energy future.

India’s commitment to cleaner energy is evident as it targets a 15% share of natural gas in the energy mix by 2030, a substantial increase from the current 6%. Despite infrastructure challenges, recent significant investments have expanded the natural gas transmission network to 22,000 kilometres, raised LNG regasification capacity to 47.7 MMTPA, and achieved nearly complete coverage of city gas distribution authorizations (98% nationwide). This underscores India’s dedication to cultivating a sustainable and diversified energy portfolio.

India’s natural gas market is undergoing a transformation driven by infrastructure development, policy support, increasing demand and a focus on environmental sustainability. The continued expansion to newer markets & development of existing gas markets will not only diversify the energy mix but also contribute to India’s journey towards a cleaner and more sustainable energy future. Gas exchange is one of the key enablers in reaching the objectives of market development and growth.