The government plans to launch a natural gas trading hub by October, creating an Indian gas benchmark which will spark a surge in consumption of the cleaner-burning fuel. Oil regulator PNGRB has sought bids to hire a consultant to help develop a regulatory framework for operationalizing the gas trading/exchange hub. Government is considering the establishment of a Gas Trading Hub / Exchange, where natural gas can be traded, and supplied through a market-based mechanism. The government fixes the price of the bulk of domestically produced natural gas. The rate arrived at using price prevalent in gas-surplus nations of US, Canada, UK, and Russia is USD 3.06 per million British thermal unit for six month period. In comparison, the cost of imported LNG into India is around USD 7.5.
The Government has envisaged ushering into a gas-based economy by increasing the share of natural gas in the primary energy mix of the country from current level of about 6 percent to 15 percent by 2030. The thrust is on increasing the availability of natural gas by enhancing the domestic production, encouraging the import of Liquefied Natural Gas (LNG), completion of national pipeline grid and speedier roll out of City Gas Distribution network in the country.
- It creating an Indian gas benchmark which will spark a surge in consumption of the cleaner-burning fuel.
- The government fixes the price of the bulk of domestically produced natural gas.
- The cost of imported LNG into India is around USD 7.5.
- The world’s biggest natural gas hub is the Henry Hub in the US state of Louisiana.