Turn to the nation's most objective and informative daily environmental news resource to learn how the United States and key players around the world are responding to the environmental...
By Nushin Huq
India will target expanded access to energy and greater efficiency as its oil demand is expected surpass China’s in the next five years, a Ministry of Petroleum and Natural Gas official said.
To prepare, the Indian government has rolled out a series of changes in its energy regulations to open its markets to private investors, Shri Dharmendra Pradhan, a minister of state in the Ministry of Petroleum and Natural Gas, said during a news conference at the CERAWeek Energy conference in Houston. India is the world’s third-largest oil consumer, and its demand growth will eventually outpace China’s by 2022, according to an International Energy Agency report released March 6.
“Our high growth rate has led to increasing pressure on our energy sector across the upstream and downstream domains,” Pradhan said.
Indian Prime Minister Narendra Modi’s energy plan focuses increasing access by developing petroleum infrastructure and expanding the national gas grid network, Pradhan said. Another focus is encouraging capital investment in the oil sector and also in railways and opening new waterway routes, Pradhan said.
The country also is focused on increasing oil and gas production by the upstream sector and acquiring assets overseas, Pradhan said. The country plans to increase the production of renewable energy, though Pradhan told reporters that India has no intention of abandoning coal-based power production.
In February, the ministry announced the winning bids for oil exploration contracts. Pradham and a delegation of comprising of senior ministry officials and India’s leading oil and gas companies will unveil at the conference the country’s next set of energy exploration policies, which aim to open up India’s exploration and production sector to private and international investment.
Modi’s energy program also aims to expand the national gas grid network from the current 15,000 kilometers to 30,000 kilometers and extending natural gas pipeline to 10 million houses over next five years, Pradhan said.
Currently, natural gas makes up about 7 percent of energy consumption in the country, but the government would like that to increase to 50 percent over the next five or six years, Pradhan said. This expansion includes a project to expand the use of liquefied natural gas as transport energy in long-haul transportation, both in trucks and ships. A long-term contract already is in place in which one train of liquefied natural gas from the Sabine Pass facility in Louisiana is earmarked for India, Pradhan said.
The country’s new hydrocarbon exploration license and policy aims to propel investment in exploration and production sector and increase flexibility to investors, Pradhan said. Features include the issuance of a single license to explore conventional as well as unconventional oil and gas resources, freedom in pricing crude oil and natural gas and freedom in marketing crude oil and natural gas.
India’s Ministry of Petroleum and Natural Gas is a major sponsor in IHS Markit’s 2017 CERAWeek conference.
To contact the reporter on this story: Nushin Huq in Houston at nHuq@bna.com
To contact the editor responsible for this story: Larry Pearl at email@example.com
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)