India’s goal to become a “gas-based economy” by more than doubling the share of natural gas in its energy mix to 15% by 2030, seems a tall order, given inadequate capacity of liquefied natural gas (LNG) terminals, stagnant domestic production and volatile gas prices.
The prospects of complete pricing freedom from 2027 and the high prices of gas from “difficult fields” may encourage major domestic producers like Reliance-bp and ONGC to scale up production, yet inadequate infrastructure for LNG imports could stymie the plans to accelerate gas consumption at the targeted pace.
“I think 15% by 2030 is an ambitious target. India is a price sensitive market and the gas markets are likely to remain tight after the Ukraine crisis.
