Experts for new gas policy
According to Mr Khanna, the manufacturing sector's share is set to increase from 16 per cent to 25 per cent by 2022.
Mumbai: Policies like Make in India, development of clean energy, growing urbanisation and India’s commitment to reduce carbon emission intensity would propel the demand for natural gas in the coming years, but experts said that lack of proper demand assessment and supporting policies could hamper the much needed investment in this sector.
“Till now we haven’t done any serious demand estimates on how much gas we will really need to fulfill our social and economic development agenda. We need to have a proper demand assessment supported by clear policy and regulation to meet our future gas consumption demand,” said Rajeev Khanna, senior advisor, oil & gas, Ernst & Young while participating in conference on ‘Gas Market in India’ organised by PHD Chambers.
According to Mr Khanna, the manufacturing sector’s share is set to increase from 16 per cent to 25 per cent by 2022 leading to multi-fold increase in energy demand.
While there are many estimates for India’s long-term gas demand given different assumptions around the availability, affordability and growth in key end use segments, a report released by E&Y with PHD Chambers stated that India’s gas demand could at least double from the current consumption level of 139 mmscmd over the next 10-15 years.
“The actual build-up of gas demand would be a function of the interplay of various factors and policy initiatives such as the development of clean energy sectors, pricing and cost competitiveness of gas, climate change commitments, etc,” it said.