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New Delhi, Dec 23
De-carbonisation efforts and competitive pricing, among others, can help in the proliferation of a gas-based economy, according to A. K. Jain, Chairman, Petroleum and Natural Gas Regulatory Board (PNGRB).
“A gas-based economy can happen on three pillars: decarbonisation, ensuring competitive pricing for consumers, and through fiscal contribution to the state and central coffers by stopping leakage from competing fuels. As we navigate the intricacies of transitioning to cleaner energy, the government’s recent announcement on carbon markets is a key positive signal,” Jain said at an event organised by the Indian Gas Exchange (IGX).
Marking its third anniversary, IGX released a report on the gas sector, which was launched by the PNGRB chief. The report charts a strategic roadmap through a short, medium and long-term policy, and regulatory interventions to meet the goal of a gas-based economy.
It identifies measures such as shortening capacity booking timeframes, establishing an independent system operator, and bringing natural gas under the GST regime.
Former PNGRB Chairman, D. K. Saraf, said a multi-faceted approach is imperative to ensure the seamless functioning of the gas exchange, including the establishment of an independent system operator, real-time gas bulletin boards, and standardising gas purchase and transmission agreements.
He added that the power sector, having undergone regulatory evolution, is now two decades ahead of the gas sector. To bring the latter up to par, it is essential to implement simplified transportation tariffs and GST in the sector, emphasising that such reforms are integral to preventing market segmentation and fostering further evolution.
IGX MD & CEO, R. K. Mediratta, said the exchange can play a key role in enabling India’s transition to a gas-based economy by benefiting gas producers, transporters, marketers, and consumers.
In Calendar Year 2023, IGX achieved a volume of 47.1 lakh mBtu (till December 15), with 225 participants (44 members and 181 clients). It commands about 18 per cent of the spot market share in the country.
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