New Delhi, August 8, 2024: The Bharat LNG Summit, held at PHD House, New Delhi, on the theme “Envisioning India’s Future with LNG,” saw insightful discussions led by key industry leaders and government officials.
Mr. Anjani Kumar Tiwari, Member of the Petroleum and Natural Gas Regulatory Board (PNGRB), emphasized the government’s commitment to various reforms such as CGT licensing, reduction of VAT to 5% in some states, tariff reform aiming for a single nationwide tariff, product pricing reforms, and incentives for pipeline operators. He stressed the necessity of a comprehensive pipeline network for optimal terminal utilization. Addressing the confusion around energy transition, especially regarding energy poverty and sustainability, he outlined five pillars to elevate LNG’s share in the energy basket from 6% to 15%: increasing domestic production, expanding natural gas pipelines, adding LNG terminals, promoting gas exchange, and rationalizing gas pricing.
Mr. Tiwari called for better infrastructure utilization, smart LNG sales and purchase agreements, third-party access for LNG, development of gas hubs, rationalization of regasification charges, and market exclusivity to achieve a gas-based economic vision.
Shri Rajinder Kumar, Economic Advisor (IFD) at the Ministry of Petroleum and Natural Gas, highlighted the interconnectedness of the global energy landscape. He noted India’s progress with installed LNG capacity and ongoing projects, including the inauguration of 50 LNG stations. He stressed the need to boost LNG use in heavy-duty vehicles, pointing out that while there are 590,000 such vehicles worldwide, the majority are in China, with significantly fewer in Europe and the USA.
He likened the LNG scenario to the semiconductor industry in Europe and the USA, advocating for a similar push in India to strengthen its LNG sector.
Dr. C. Laxma Reddy, Executive Director of Oil and Natural Gas Corporation Ltd. (ONGC), highlighted the impact of geopolitical tensions, such as the Russia-Ukraine conflict, on the fragility of energy supplies. He noted that Europe’s shift away from Russian gas is reshaping global LNG trade, driving investments in LNG as a transitional fuel. Countries like China and India are rapidly increasing imports to meet growing energy demands and improve air quality. Technological advancements in LNG, including better liquefaction and shipping technologies, are making it a more viable and sustainable option.
Mr. Ramachandran Laxminarayanan, Director of Business Development at NMDC Energy Abu Dhabi, UAE, discussed the Middle Eastern LNG perspective, highlighting the UAE’s doubling of capacity and its focus on energy transition and carbon capture. He emphasized India’s importance to the UAE, being its second-largest trading partner after China, and noted the UAE’s significance as India’s second-largest export market after the USA.
Mr. Rajesh K Mediratta, MD & CEO of Indian Gas Exchange (IGX), reported that IGX achieved 206 MMSCMD in the current quarter, with LNG accounting for 52% and overall growth at 18%. He emphasized the role of LNG in meeting future demand and the importance of contracting in LNG sourcing. He also introduced GIXI and its development of a proprietary index.
Mr. Mediratta projected a shift of many industries to gas, which will increase demand, and highlighted the need for transparent trade practices and security assurances.
Mr. Pawan Tibrawalla, Co-Chair of the Hydrocarbons Committee at PHDCCI and CMD of Archit Buildcon Pvt. Ltd. delivered the vote of thanks. He encouraged continued meaningful discussions, collaboration, and efforts toward a sustainable and prosperous future for India’s LNG sector.
The Bharat LNG Summit 2024 set a robust foundation for India’s ambitious LNG vision, reinforcing the need for strategic infrastructure development, effective policies, and collaborative efforts to drive growth and sustainability in the LNG sector.
The Summit was sponsored by GAIL, NMDC, and IGX, and supported by PHDCCI annual sponsors including DLF Ltd; Jindal Steel & Power; KLJ Group; Multani Pharmaceuticals Ltd; Marble City; MMG Group; Radico Khaitan Ltd; Uflex Ltd; Vestige; Eazy ERP Technologies; JK Tyre & Industries Ltd; Sagar Group of Industries; Superior Industries Limited; Samsung India Electronics; Oswal Greentech; Apeejay Stya Group; Blossom Kochhar Beauty Products Pvt Ltd; DCM Shriram; R E Rogers; Trident Group; Ajit Industries Pvt Ltd; Bhagwati Plastic and Pipes Industries; Central Coalfields Ltd; DD Pharmaceutical Ltd; Hindware Sanitary; Jindal Steel; Modern Automobiles; and P S BEDI & Co.