IGU: Pipeline Bottlenecks, Pricing Reforms Key to India's Natural Gas Push
UPSC / SSC current affairs note · IR
Why in news
The International Gas Union (IGU) has highlighted that India's natural gas expansion depends on addressing pipeline infrastructure and pricing reforms rather than building more LNG terminals. This comes as India aims to increase natural gas share in its energy mix from 6% to 15% by 2030.
Background
India has set a target to raise the share of natural gas in its primary energy mix to 15% by 2030, up from about 6% currently. The government has been promoting natural gas as a cleaner fuel and has invested in LNG terminals and pipeline networks. However, bottlenecks in pipeline connectivity and pricing issues have hindered growth.
Key facts
IGU report emphasizes pipeline infrastructure and pricing reforms over expanding LNG terminals for India's natural gas push.
India's current natural gas share in energy mix is about 6%, target is 15% by 2030.
Pipeline bottlenecks and lack of last-mile connectivity are major hurdles.
Pricing reforms needed to make natural gas competitive with other fuels.
Supply diversification through domestic production and long-term contracts is recommended.
India has several LNG terminals but utilization is low due to pipeline constraints.
The IGU suggests a market-based pricing mechanism to attract investment.
Natural gas is seen as a transition fuel to reduce carbon emissions.
Prelims pointers
- International Gas Union (IGU): global body representing gas industry
- India's target: 15% natural gas share in energy mix by 2030
- Current share: ~6%
- LNG: Liquefied Natural Gas
- Key pipelines: Jagdishpur-Haldia, etc.
- Pricing reforms: move towards market-determined prices
Mains angles
- GS3: Infrastructure - Energy - Discuss the role of pipeline infrastructure in India's energy security.
- GS3: Economic Reforms - Critically examine the need for pricing reforms in the natural gas sector.
- GS3: Environment - Evaluate natural gas as a transition fuel in India's climate commitments.
- GS2: Government Policies - Analyze the effectiveness of India's natural gas expansion policy.