The Northeast region has tremendous potential in the production of Natural Gas which can save approximately Rs 14,000 crore apart from allowing backward linkage in the local economy with job and trade opportunities in the region, said Rajesh K Mediratta, Managing Director and CEO, Indian Gas Exchange (IGX) on Saturday.
Speaking at a seminar organised by Indian Gas Exchange (IGX), Mediratta said, "The Northeast has tremendous potential in the production of Natural Gas. As the Northeast Gas Grid is moving as per schedule and is likely to become operational by 2026, the deposit of 6 million MMSCMD Natural Gas can be monetised by the existing producers. This 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."
Highlighting the role of Natural Gas from Assam and the Northeast in support of India's energy security, he said that India stands to benefit tremendously from the exploration of the Northeast's rich Natural Gas deposits.
"India is currently importing about 50 per cent of its consumption, around 100 MMSCMD to meet the total demand of 200 MMSCMD required. With the effective gas pipelines in the region, the existing petroleum companies can unearth 6 MMSCMD. This will save approximately Rs 14,000 crore apart from allowing backward linkage in the local economy with job and trade opportunities in the region. 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 added.
Mediratta also shared that natural gas is a cheaper and cleaner option as compared to LPG and the price at which is being supplied by Gas producers in the region at a discount of 40 per cent of APM gas sold in other regions. This makes piped gas cheaper than LPG without subsidies, therefore, it makes a case for households to switch to gas, he added.
Highlighting the market potential for the export of Natural Gas from the region, Rajesh K Mediratta said, "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 8 million MMBtu (201 MMSCM) gas volume in October'24, higher by 160 per cent on MoM basis.
Decreased APM gas allocations to the CGD sector and high global LNG prices have contributed to increased trade volumes. IGX currently offer trades at 15 delivery points. Out of which, 4 are LNG terminals, 3 are Pipeline Interconnection Points and 8 are domestic gas field landfall points offer delivery-based trade in six different contracts as Day-Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly, under which the trade can be executed for twelve consecutive months.
During the month, 40 trades (maximum number) were executed Daily, followed by 29 trades in each fortnightly and monthly, 16 trades in Weekly, 8 trades in day-ahead and 2 trades in Weekday contracts respectively. (ANI)
