Dependence on gas import to double in two years

New Delhi, Jan 12, (ANI): India's dependence on import of natural gas is expected to almost double in nearly two years and ten fold by 2030, rapidly shooting up the prices of electricity also.

This was stated here today by former CEO and MD of Petronet LNG, Prosad Dasgupta, during a Workshop on 'Dash for Gas: Opportunities and Challenges' organized here today by Observer Research Foundation.

Dasgupta said that India's import dependence for natural gas would increase to 60 percent by 2014/15 from the current 33 percent. The overall import dependence for coal and natural gas would increase ten fold by 2030, he said.

This will make it necessary that electricity prices increase 3 fold in the future, Dasgupta said.

Criticising the pricing policy, experts like Mr. Nitin Zamre (MD, ICF International) noted that while we pay USD 12-14/mmbtu for imported gas, the domestic suppliers were paid nearly USD 4/mmbtu. They pointed out that this is affecting the investment on the sector and the resultant reduction in production domestically.

Experts said this is leading to a situation where while domestic gas, priced at $ 4/mmbtu, is dwindling in terms of availability, re-gasified LNG, even if it is priced at $ 14/mmbtu, is abundantly available and will cost roughly half that of subsidized diesel for use in vehicles and also will be competitive with domestic piped gas at current prices of compared on a heating value basis.

P.K. Bishnoi, Member, Commercial of the Petroleum and Natural Gas Regulatory Board (PNGRB) said that India must use 'Gas to Gallop' towards economic development.

Dr. Sudha Mahalingham, Member, Distribution of the PNGRB said that said that India is grappling with the dilemma over whether the energy and transportation infrastructure is a commodity whose price can be decided by the market or a strategic resource over which the Government can exercise control.

The conference was attended by Dr. B. Mohanty, Advisor to the Ministry of Petroleum and Natural Gas, Members of the PNGRB, experts, officials of private players and others. (ANI)