My Views in short - Government Priorities for the Development of LNG in India

FOX PETROLEUM Just because you have stolen someone's heart, luckily owned and occupied as a home, doesn't give you the audacity to enforce hurtful policies. ---> 

Government Priorities for the Development of LNG in India: The current Government has shown substantial economic growth in India coupled with increased energy consumption to drive a fast growing economy. As set by Government of India the future growth aspirations of economy, it is very well clear that access to abundant and economically viable energy will be critical to sustaining the momentum of this growth due to lack of Energy Infrastructure specially the fuel side like LNG Infrastructure. Liquefied Natural Gas (LNG) can be a long term solution to India's needs in particular that it is a proven and procured or explored from commercially viable energy source.

I am very blunt may cause some problem to me – because I need to learn which questions are unanswerable, and not to answer them: this skill is most needful in times of stress and darkness. What to do …feeling very sad to state that – 50 years old LNG industry, India is still a new comer to the celebration since it missed the first round of LNG trade growth and infrastructure development. Whereas  LNG usage has risen dramatically in the country in last decades, but it has done so in an unplanned manner that the industry was not able to utilize its fracking for economic growth rather it has created debts of developed infrastructure;

 Government is keen in development of LNG Infrastructure and LNG import for power plants; You can see that from his speech during election time in 2014 when the Current Prime Minister HE Shri Narendra Modi has stated in public meetings about 16000 MW Power Plant are shortage of fuel; It shows from day one the commitment of this Government towards LNG needs in India. Our Prime Minister vision seems that Commerce with all nations, alliance with tech transfers, Joint Participation for use of commerce and technology at ground zero India – it all sums up – Make in India.

What role will LNG play in India’s future energy mix? – Natural gas became the beneficiary of this trend as countries realized the utility of a fuel that had until then been flared as a waste product during crude oil extraction. Over the next few decades, extraction became more viable, enabling commercialization of natural gas in a number of applications as a substitute to coal and crude oil derivatives. I think use of natural gas in trucks will cut emission ratio as well efficiency of the machines on road; It will vest down environmental politics of India – THE NGO GAME; There are several advantages of natural gas over traditional fossil fuels like oil and coal. It is the cleanest burning fossil fuel. The combustion of natural gas produces 60–90 percent less emissions of hydrocarbons in the atmosphere as compared to oil. No soot or ash is left behind after combustion, thus reducing pollution levels further. Natural gas infrastructure, once established, is convenient and economical. The gas can be piped directly to the customer facility, eliminating the need for regular deliveries as is the case with oil, leading to a more reliable supply.

Natural gas is the economy's great white hope. As a fuel, gas is underrepresented in India's energy mix, accounting for a mere ~12 percent of primary energy consumption, well below the world average of 23 percent. The Planning Commission has an ambitious target of increasing the share of natural gas to 20 percent from the current levels by 2025.

 

Ajay Kumar Chairman Fox Petroleum

The bulk of this shift towards a gas economy will come from four consuming sectors: power, fertilizers, industrial (petrochemicals, refining, steel etc) and City Gas Distribution (CGD). It is estimated that by 2029–30, these four sectors will account for 746 MMSCMD of gas demand. The capacity of domestic gas production to serve this demand is limited and there is substantial uncertainty around trans– national pipelines. By implication, LNG will play a critical part in establishing the foundation of India's aspirational gas economy, and by extension, its energy security endeavour. In this section, we will investigate the gas demand and supply in detail and identify the LNG opportunity.

How does the government seek to promote city gas distribution? – No idea, when we don’t LNG supply grid to station to station it is impossible to talk about LNG City Gas distribution network; India doesn’t have LPG Grid, how come we say we will create LNG Grid; Huge players with heavy investments are waiting but Government wants to wait more on seeing its pros and cons; Like Oman India Pipeline will be fully funded, if it happens it will transport minimum 8 trillion cubic feet of gas in 20 years; It will enhance use in Power plant, fertilizers and daily use in replacement of diesel trucks and cargo trains;  

What tax and regulation measures can be used to promote LNG consumption? – I am not interested in relaxation of tax on importation, but when it goes to end user, I support end user not to be charged extra on the second sale of gas in the name of tax as import duty on gas is already been charged to importer;

Can LNG meet India’s international carbon reduction commitments? – India is far better in carbon reduction before LNG import and after it will be known as pioneer in carbon reduction commitment of the Government before world leader; We don’t need lessons from anywhere on carbon reduction; We pollute less despite having number two in situation of population. 

Ajay Kumar Chairman Fox Petroleum