With the aim of developing natural supply and distribution infrastructure, India is investing over $60 billion, Oil Minister Dharmendra Pradhan said on Sunday, adding it will help the country achieve the target of more than doubling the share of natural gas in its energy base from the current 6.2 per cent to 15 per cent by 2030.
The government has been focusing on increasing the mix of natural gas in its energy composition and is giving special impetus to develop gas infrastructure across the country.
“An estimated investment of 60 billion US dollars is underway in building gas pipeline and terminal infrastructure that are nearing or in advanced stages of completion … City gas distribution network will soon cover 70 per cent of India’s population,” he said at the third International Think Tank (ITT) meeting.
The minister said the government is exploring strategic partnerships for overall development of the oil and gas sector.
“The role of private sector — both domestic and from abroad, for bringing in investments with necessary innovations for future energy landscape in the country, will remain crucial,” he said.
Executives of energy companies present at the meeting stated that India will continue to increase consumption of fossil fuels in its energy mix, and there is an urgent need for an integrated energy policy cutting across all forms of energy.
Talking about key challenges confronting the energy sector, the oil minister said, “The foremost challenge of our time is the energy trilemma. It is about providing — sustainability, securely, and affordably-sufficient energy to our growing population”.
The oil minister also showed concerns on the development taking place in the fuel-producing nations and said, “We have seen the most disruptive developments.
"US sanctions on Iran and Venezuela, attacks on Saudi oil processing units, volatile conditions in Strait of Hormuz, unrest in the Middle-East, and US-China trade war, to name a few.”
“These developments have an enormous impact on India’s energy security and also on our economic, budgetary and investment dimensions,” the minister said, adding India’s import dependency on crude oil and LNG continues to rise unabated.
Import dependence is now over 84 per cent for crude and 45 per cent for natural gas.