Ongoing work for Northeast Natural Gas Grid are as per the schedule and will likely be operational by 2026 according to Rajesh K Mediratta, Managing Director and CEO of Indian Gas Exchange (IGX).
India's northeast region has tremendous potential in the production of natural gas.
The region has a deposit of 6 million MMSCMD Natural Gas which can be monetised by the existing producers, said Mediratta, addressing the 'Gas Market Development for North East', where leading energy producers and stakeholders participated in Guwahati.
"This (grid) will add to the country's energy security as IGX will help Gas producers to monetise stranded gas who can sell the surplus gas to the other regions," Mediratta added, as per a statement by the gas exchange.
India stands to benefit tremendously from the exploration of the Northeast's rich Natural Gas deposits.
India currently imports 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 linkage in the local economy with job and trade opportunities in the region," said the IGX MD and CEO.
The access to gas network also opens up doors for newer industries like ceramic and glass which are run exclusively on Natural Gas.
"Given the natural resources, these industries are expected to thrive in the region. The rejuvenated Gas distribution network with NEGG is also expected to improve supply to tea estates, allowing them to switch back to Natural Gas from traditional energy sources like coal," he said.
Highlighting the market potential for the export of Natural Gas from the region, Mediratta said, neighbouring 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 Northeast economy 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 mmBtu, Northeast provides a huge competitive economic edge for the producers of the region."
The Indian Gas Exchange (IGX) traded eight million MMBtu (201 MMSCM) gas volume in October 2024, higher by 160 per cent on a month-on-month (MoM) basis.
Established in 2020, the Indian Gas Exchange Limited (IGX) is India's first automated national-level Gas Exchange for physical delivery of natural gas. (ANI)
