On Monday, Union Minister Hardeep Singh Puri emphasized that India is transitioning from an economy reliant on imported crude oil to one based on natural gas for its energy needs.
The minister highlighted that the government has recently implemented transformative measures to boost domestic gas production and reduce the country's dependence on imports. Currently, India imports about 50% of its natural gas, but with increased investments in the upstream sector, this reliance is expected to decline in the coming years.
India moving towards gas-based economy from import dependent crude based economy: Hardeep Puri | MSN
He further noted that by encouraging domestic producers to invest in gas production, the government is not only strengthening India's energy base but also advancing the country's economic and environmental objectives.
"India is well on its way towards transforming into a gas-based economy with key steps taken under the leadership of PM @narendramodiJi... Since we import about 50% of our natural gas requirement, enhanced gas production within the country will reduce our import dependence" said Puri in a social media post.
The minister also pointed out that gas production in India grew by 18% last year, signaling positive growth. Projections show that production will reach 38.2 billion cubic meters (BCM) in 2024, 40.9 BCM in 2025, and 45.3 BCM by 2026.
This consistent increase in production will support India’s transition to a gas-based economy, ensuring improved energy security and stability.
Additionally, the minister mentioned a key reform introduced by the government: an incentive for gas producers from new wells in nomination fields, which allows them to receive 20% higher prices.
This policy is designed to attract more investment in India’s exploration and production (E&P) sector, boosting investor confidence and encouraging active participation in India's energy transformation.
He said "These reforms will also incentivize investment in India's E&P sector by ensuring that gas production from new wells of nomination fields will receive 20 per cent higher prices".
Through these initiatives, India is working toward a cleaner, more energy-efficient future by prioritizing domestic gas production and reducing the environmental impact linked to high import dependency.
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