India should take advantage of lower natural gas prices by signing long-term supply pacts in the current quarter to secure its energy needs, Deepesh Nanda, chief executive officer of GE Gas Power, South Asia, told Moneycontrol.
Natural gas prices have fallen amid lower demand in Europe due to warmer-than-usual temperatures this winter. Weak demand due to the recent COVID-19 lockdown in China, one of the largest consumers of natural gas, has also been a drag on prices. Prices of natural gas have been the most volatile in 2022 due to the Russia-Ukraine war.
“In the first three months of 2023, it is time for the Indian government to strike long-term agreements with countries like Qatar, the US, Australia and Russia, and see if we can get relatively low-cost natural gas,” Nanda told Moneycontrol.
India has set a target of increasing the share of natural gas to 15 percent of energy sources by 2030 from 6 percent in 2017. However, low gas output in the country and volatility in international prices have made it difficult for Indian consumers to secure supplies.