Oil marketing companies have invested over 32,000 crores to upgrade their refinery processes to produce BS-VI grade fuel. Given the abundance of biomass in India, the use of compressed bio-gas will be promoted in a big way in automotive, industrial and commercial uses.
India’s energy sector will be noticeably different from its current avatar, to be driven by new technology and business models, says Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Steel. “We are encouraging our oil and gas companies to develop extensive and qualitative engagement with Indian technology and research institutions of excellence,” he says. Seven Indian oil and gas PSUs joined with IIT Bombay last year to set up a Centre of Excellence in oil, gas and energy. According to him, the energy transition currently underway can become more manageable only if proactive measures are set in motion. Digital technologies are transforming the energy sector in a profound manner. “Industrial Revolution 4.0 is truly at our doorstep. Indian energy companies will have to quickly adapt and adopt these technologies at a faster pace. We need to create more innovative platforms in India for convergence of leading global technology leaders in the energy sector,” he says.
India must achieve the twin objectives of more energy availability at an affordable price and less carbon through a healthy mix of all commercially-viable energy sources. India’s target to transform into a $5 trillion economy by 2024, requires a gradual and measured energy transition by deploying all sources of energy. Contours of India’s energy transition are also changing fast in sync with global challenges and opportunities, he points out. The government’s approach to energy policy is based on energy access, energy sustainability, energy affordability, energy efficiency and energy security. India is expected to become the largest energy consumer surpassing the US and China, in the next decade or so. Indian is well on its way to meet the target of 20% blending of ethanol in petrol and five percent blending of bio-diesel in diesel by 2030. India is advancing its collaboration with countries such as Brazil and the US to improve blending technologies in the transport sector. Oil marketing companies have invested over 32,000 crores to upgrade their refinery processes to produce BS-VI grade fuel. Given the abundance of biomass in the country, the use of compressed bio-gas (CBG) will be promoted in a big way in automotive, industrial and commercial uses in the coming years. SATAT, an important initiative of the government targets to set up 5000 compressed biogas plants mostly by private entrepreneurs who are assured price and offtake guarantee by oil marketing companies. These plants will not only help tackle the problem of agricultural waste burning but also increase farmers’ earnings. India has an ambitious plan to increase renewable energy capacity to over 175 GW by 2022 and up to 450 GW subsequently.
Global gas production and markets have witnessed significant restructuring during the last few years. The global supply of LNG is increasing in a rapid pace, and globally LNG prices are coming down significantly.