India's Charge Towards a Gas-Based Economy: A Greener, Self-Reliant Future

Union Minister Hardeep Singh Puri emphasizes India's shift towards a gas-based economy, reducing reliance on imported crude through increased domestic gas production. Significant growth projections and government incentives aim to attract investments in exploration, enhancing India's energy security and aligning with environmental goals for a sustainable future.

Union Minister Hardeep Singh Puri underscored India's strategic move towards a gas-based economy, steering away from dependence on imported crude for its energy needs. The government has introduced pivotal measures to boost homegrown gas production, aiming to decrease the nation's import reliance.

Currently, India sources about 50% of its natural gas from imports. However, through new investments in the upstream sector, this percentage is poised to decline. By fostering domestic production, the government not only fortifies India's energy framework but also aligns with economic and environmental objectives, Puri elaborated in a social media statement.

Gas production in India has experienced an 18% uptick over the past year, with projections estimating output levels of 38.2 billion cubic meters (BCM) in 2024, climbing to 45.3 BCM by 2026. This consistent growth is pivotal to India's vision of a gas-centric energy landscape, enhancing its energy security and resilience.

A key government reform involves incentivizing gas producers with new wells in nomination fields, offering 20% higher prices. Such policy changes are designed to galvanize investment in India's exploration and production sector, bolstering investor confidence, and hastening the energy transition process.

These strategic initiatives highlight India's commitment to prioritizing domestic gas production, fostering a cleaner, sustainable, and energy-efficient future while curtailing environmental impacts associated with extensive import reliance.

(With inputs from agencies.)