Natural gas reforms in India: analysis of the neoteric approach towards environment sustainability

Abstract

Wars in Europe and Middle East has posed serious challenges for developing economies like India and other South East Asian nations in terms of energy fulfilment and energy security. Evolving policy approach of exploring other energy reserves has become imminent than ever before. The Government of India, accordingly, has approved the ‘Natural Gas Marketing Reforms’ with a major objective to move towards Gas-based economy. The consumption of natural gas in India presently is hovering around 6% gradually moving upwards. Whereas, the Government of India has set an ambitious target of reaching 15% by 2030. The statutory framework in India for the upstream sector was established back in the year 1948 with Oilfields (Regulation and Development) Act, and Rules framed thereunder. Whereas, for the Downstream sector an established framework is already in place through the Petroleum and Natural Gas Regulatory Board Act, 2006. The recent policy shift by the Government of India through Natural Gas Marketing Reforms, is move towards gas based economy and it arose out of the obligations imposed under the Paris Agreement. The Government of India ratified the Agreement which obligates members to reduce carbon emissions by the year 2030, by meeting energy requirements with renewables and natural gas. European energy consumption trend offers an insight on further reducing carbon emissions, as approximately 23% of Europe’s energy comes through natural gas. Excessive emissions from burning of coal and petroleum products, depleting fossil reserves and abundant gas reserves provide an opportunity for growing economies to shift from coal-based to gas-based economies. This requires augmentation and expansion of natural gas supply, distribution and uninterrupted global supplies and a rationale policy framework. The focus of the article is two-pronged, focusing on the impact of the Natural Gas Marketing Reforms as a policy and the Environmental and health concerns relevant from this perspective. © 2024, Centro de Investigaciones Energeticas Medioambientales y Tecnologicas (CIEMAT). All rights reserved.