One Nation, One Gas Grid
The Prime Minister inaugurated the 450-km natural gas pipeline between Kochi in Kerala to Mangaluru in Karnataka.
Objectives
- To double the share of cleaner natural gas in the consumption basket
- Diversify sources of energy
- Connecting the nation with one gas pipeline grid and bringing affordable fuel to people and industry.
Need of One Nation, One Gas Grid
- The gas-based economy is crucial for Atmanirbhar Bharat as it will not only help improve clean energy access, but also aid in the development of city gas projects.
- By connecting sources to consumers with the natural gas grid, the share of natural gas mix in the energy basket can be increased to 15% from the current 6.3% while the global energy share average is around 24%.
- It may also help in improving regional imbalances as currently natural gas is located in different pockets of the country.
- The natural gas being on priority list can also further strengthen the upstream wing like ONGC, midstream wing like GAIL India and downstream wing like Oil India Ltd. which will further lead to increase in exploration as well as production and may help in reducing the imports of Natural gas which is currently around 53%.
Challenges
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- Infrastructure hiccups especially in terms of allocation of land for developing the grid.
- Maintaining the stability of the policy regime for attracting investments.
- Pricing mechanism eg: Administered pricing mechanism.
- Maintenance of land records
- Public awareness about the natural gas economy.
Way Forward
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- E-bidding process for petroleum products in terms of diversifying the energy basket.
- Tariff rationalisation
- Increase investment in natural gas exploration which will further result in cleaner environment, employment generation and improving the health of people as well as per capita energy consumption.
- Removing energy poverty and ensuring energy security by building platforms especially for MSME in exploration as well as production.
- Building terminals along with pipelines and overseeing the un-utilised gas pipelines.
Conclusion
- At the end, every single household, manufacturing unit and power plants need to get connected to the natural gas grid and it needs to be in a much faster way for fulfilling the government’s energy roadmap.
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