‘India’s Gas Demand Will Grow By 500% In Near Future’
What are the prospects for natural gas in the next five years?
I believe the next five years will be a game changer for the sector. And the prospects for natural gas is extremely promising. India is poised to pursue a diversified energy strategy aimed at meeting the country's burgeoning demand for clean energy. In comparison to coal and oil, natural gas is considered a cleaner fossil fuel and expected to become a substantial part of the energy mix, especially as both India and the global community intensifies efforts to lower carbon emissions and shift to greener energy sources. It provides the necessary bridge in this transition towards green energy.
Where do you see the demand for gas heading in the foreseeable future?
India's gas demand would grow over 500 per cent in the foreseeable future as the country has set a target to raise the share of gas in the country's energy mix to 15 per cent by 2030, from about 6 per cent. The country's LNG regasification capacity is set to expand considerably as new terminals and proposed pipelines are being planned. After the 11th bidding round, city gas distribution (CGD) would be available in 295 geographical areas (Gas), covering 98 per cent of India’s population.
What challenges will the increased demand pose for MGL, others?
Against the backdrop of changing industry landscape, MGL faces a few headwinds from the operational and competitive standpoints. Domestic gas allocation has not been able to keep pace with the increasing gas demand which has necessitated MGL to procure gas at a higher rate. MGL operates in congested geographical areas such as Mumbai and Thane where expanding the infrastructure becomes challenging largely on account of securing necessary approvals and smaller working window.
Are you looking at branching out to green fuel options?
We are actively strategising and working towards diversifying our business portfolio. We have funds available in our balance sheet and our intention is to best discern avenues that are most advantageous to us. Recently, we signed a MoU with the Brihanmumbai Municipal Corporation to set up one of the largest compressed bio-gas plant in Mumbai. The plant will have a capacity to process 1,000 tonnes of wet waste per day. This initiative will cut the emission of methane from landfills, develop alternate sources for the natural gas, make Mumbai a greener city and a healthier space, help in generation of local employment, development of circular economy and towards achieving our sustainable development goals.
