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Exploration, monetisation of natural gas will benefit Northeast India
OIL & GAS

Exploration, monetisation of natural gas will benefit Northeast India

Exploration and monetisation of natural gas deposits in the northeastern region can help cut down its import, while also boosting the local economy and providing more trade opportunities, a top official of the Indian Gas Exchange (IGX) said. Rajesh K Mediratta, Managing Director and CEO of IGX, the country's first automated national level gas exchange, maintained that the region can supply the surplus gas not only to other parts of the country, but also to neighbouring Bangladesh and earn significant revenue. "The Northeast has tremendous potential in the production of natural gas. As the Northeast Gas Grid is likely to become operational by 2026, the deposit of 6 million MMSCMD of natural gas can be monetised by the existing producers," Mediratta said.

"This will add to the country's energy security as IGX will help gas producers sell the surplus gas to the other regions," he said, while speaking at a seminar on 'Gas Market Development for North East' here on Friday. Highlighting the potential of natural gas from the Northeast in support to India's energy security, the official said, "India is currently importing about 50 per cent of its consumption, around 100 MMSCMD to meet the total demand of 200 MMSCMD. With the effective gas pipelines in the region, the existing petroleum companies can unearth 6 MMSCMD." This will save approximately Rs 14,000 crores, apart from allowing backward linkages in the local economy with job and trade opportunities, he maintained.

"The access to gas network also opens up doors to newer industries such as ceramic and glass which run exclusively on natural gas. Given the natural resources, these industries are expected to thrive in the region," Mediratta added. The rejuvenated gas distribution network with the Northeast Gas Grid will also improve supply to tea estates, allowing them to switch back to natural gas from the traditional energy sources like coal, he claimed.

He also highlighted that natural gas is a cheaper and cleaner option as compared to LPG, which makes case for households to switch to gas. On the market potential for export of natural gas from the region, Mediratta said, "Bangladesh has tremendous market potential as the country has been using natural gas. The natural gas producers can definitely look at this scope with potential." "With the region now connected with the National Gas Grid, there is scope for the region to earn by supplying surplus gas at a competitive cost at the IGX to other parts of the country. As the global price is at around USD 13 per MMBTU, Northeast provides a huge competitive economic edge for the producers of the region," he added.

Exploration and monetisation of natural gas deposits in the northeastern region can help cut down its import, while also boosting the local economy and providing more trade opportunities, a top official of the Indian Gas Exchange (IGX) said. Rajesh K Mediratta, Managing Director and CEO of IGX, the country's first automated national level gas exchange, maintained that the region can supply the surplus gas not only to other parts of the country, but also to neighbouring Bangladesh and earn significant revenue. The Northeast has tremendous potential in the production of natural gas. As the Northeast Gas Grid is likely to become operational by 2026, the deposit of 6 million MMSCMD of natural gas can be monetised by the existing producers, Mediratta said. This will add to the country's energy security as IGX will help gas producers sell the surplus gas to the other regions, he said, while speaking at a seminar on 'Gas Market Development for North East' here on Friday. Highlighting the potential of natural gas from the Northeast in support to India's energy security, the official said, India is currently importing about 50 per cent of its consumption, around 100 MMSCMD to meet the total demand of 200 MMSCMD. With the effective gas pipelines in the region, the existing petroleum companies can unearth 6 MMSCMD. This will save approximately Rs 14,000 crores, apart from allowing backward linkages in the local economy with job and trade opportunities, he maintained. The access to gas network also opens up doors to newer industries such as ceramic and glass which run exclusively on natural gas. Given the natural resources, these industries are expected to thrive in the region, Mediratta added. The rejuvenated gas distribution network with the Northeast Gas Grid will also improve supply to tea estates, allowing them to switch back to natural gas from the traditional energy sources like coal, he claimed. He also highlighted that natural gas is a cheaper and cleaner option as compared to LPG, which makes case for households to switch to gas. On the market potential for export of natural gas from the region, Mediratta said, Bangladesh has tremendous market potential as the country has been using natural gas. The natural gas producers can definitely look at this scope with potential. With the region now connected with the National Gas Grid, there is scope for the region to earn by supplying surplus gas at a competitive cost at the IGX to other parts of the country. As the global price is at around USD 13 per MMBTU, Northeast provides a huge competitive economic edge for the producers of the region, he added.

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