India Moves Towards Energy Self-Sufficiency as 4th Largest Refiner: Petroleum Minister
India, the world’s fourth-largest refiner, is making significant strides towards energy self-sufficiency under Prime Minister Narendra Modi's leadership, according to Petroleum Minister Hardeep Singh Puri. The Minister highlighted the country's ambitious energy goals, with energy demand expected to double by 2050, necessitating the expansion of existing energy infrastructure.
As part of this mission, the Ministry has introduced new measures to boost natural gas production. The government has notified the allocation of gas produced from new wells or well interventions from ONGC and Oil India Limited at a 20% premium over the administered price mechanism (APM) price, which is set at 10% of the Indian crude basket price. This pricing strategy, announced by the Petroleum Planning and Analysis Cell (PPAC) on a monthly basis, is designed to make new gas development projects viable, particularly in high-risk, capital-intensive areas that require advanced technology and significant investment.
Minister Puri emphasized that these initiatives will enable companies to increase natural gas production from nominated fields, contributing to the country's goal of energy self-reliance. India has already achieved record levels of gas production, reaching 36.43 billion cubic meters (BCM) in FY24, up from 28.7 BCM in FY21. The country is projected to further increase production to 45.3 BCM by FY26.
The BJP-led NDA government's focus on boosting oil and gas exploration, green hydrogen initiatives, and increasing gas consumption is central to India's energy strategy. In line with these efforts, the consumption of natural gas in India rose by 7.1% in June 2024, reaching 5,594 million metric standard cubic meters (MMSCM).
Additionally, the consumption of petroleum products, including petrol, diesel, and jet fuel, increased by 2.6% in June 2024, totaling 20 million metric tonnes (MMT). The government is committed to expanding the gas network to meet the rising demand for green fuel, supporting India's transition towards a more sustainable and self-reliant energy future.