CERA Week: India's gas grid to be completed by 2023, says petroleum secretary

Natural Gas

Moving in line with the concept of becoming a gas-based economy, India is set to complete the works of its national gas grid by 2023, a top government official has said.

Addressing the CERA Week energy summit organised by IHS Markit on March 3, Tarun Kapoor, secretary of the Ministry of Petroleum and Natural Gas (MoPNG), said, "Some policy changes are required in the country. We already have an independent regulator for the gas sector, the government is also going to come up with a transport system operator (TSO) very soon. Moreover, our gas grid will be completed in the next two to two-and-half years."

At present, India has a total of 16,788 kilo meter (km) operational natural gas pipeline in the country, while another 14,239 km is in the planning and construction stage. The move is to achieve the target of increasing the share of natural gas in India's energy basket from 6 percent to 15 percent by 2030. To achieve this goal, the country is expected to see investment to the tune of $60 billion in various gas infrastructure.

In the Union Budget 2021-22, Finance Minister Nirmala Sitharaman had announced the setting up of a TSO. "We are in the process of setting up a TSO, so that pipeline facilities will be partly available in the open market so that anyone can book space in a pipeline," he said.

He added that the country is moving towards an open gas market and he expects at least 10 percent of natural gas to be sold in the recently-launched gas exchange. One key area where gas infrastructure is likely to improve is city gas distribution (CGD)

With the completion of the tenth CGD Bidding Round, CGD would be available in 228 GAs comprising 402 districts spread over 27 states and Union territories, covering approximately 70 percent of India’s population and 53 percent of its geographical area.