India needs to put in place policies, incentives and infrastructure to prepare for a growth in consumption of environment friendly natural gas from the current 31 billion cubic metres per year (BCM/yr) to 400 BCM/yr in 2030. Assuming that each additional one BCM of gas will cost about USD one billion to develop this would imply an investment of more than USD 350 billion (about Rs.16 lakh crore) till 2030.

The above forms part of the publication “The Green Imperative: Future of Natural Gas in India-2030” released by Shri M.S. Srinivasan, Secretary, Ministry of Petroleum & Natural Gas at the Petrotech 2007 Media Centre inauguration at New Delhi on January 15, 2007. Also present on the occasion were Shri R.S. Sharma, CMD, ONGC and Chairman, Steering Committee, Petrotech 2007 and Shri A.K. Hazarika, Director (Onshore) ONGC and Chairman, Organising Committee, Petrotech 2007. The 125- page publication is based on a study by the Petroleum Federation of India (PetroFed) in association with member companies, industry experts and knowledge partner PricewaterhouseCoopers.

The publication places natural gas as the most suitable option amongst conventional fuels in a carbon constrained world and a growth imperative for the future. To gear up for high economic growth India needs to rapidly learn from the experience of developed markets since the Indian gas market in 2030 would be comparable in many ways to the US gas market of today.

The publication suggests adoption of net-back gas pricing policy based on replacement value of gas compared with alternative fuels through market determined pricing. Measures have been suggested to further improve investment climate with better State and Central government coordination.

There are several challenges in increasing gas use due to high and volatile prices, geopolitical uncertainties, creating trusted partnerships, access to major gas resources and development of infrastructure. More so because gas finds and consumption centres are, almost always, far apart. Recommendations have also been made for establishment of a regulatory / legal framework and a Central Administration for Energy for integrated development.

The Publication can be obtained from PetroFed at a nominal cost of Rs. 1000/- to cover handling & forwarding.