Natural gas consumption saw a notable increase in 2023-24, aided by increased domestic output and higher reliance on imported natural gas amid relatively lower international prices. In the FY21, the demand for LNG got hugely impacted by the pandemic but it was largely recovered in FY22. Thereafter, the Ukraine war resulted in international natural gas prices soaring to multi-year highs in FY23, leading to considerable dip in demand as well as supply issues in India’s case. This resulted in lower consumption as well as imports.
In FY24, however, international prices were considerably lower than in FY23, making natural gas competitive again with alternate industrial fuels in India, thereby pushing its consumption and import. This is also in line with the government’s objective of increasing the gas share in the primary energy mix to 15 per cent by 2030 from the current over 6 per cent.
The rationale behind the government’s push for natural gas in the country, even if it leads to higher imports, is rather simple. Natural gas is far less polluting than conventional hydrocarbons like crude oil and coal, and is usually cheaper than oil, for which India depends on imports to meet over 85 per cent of its requirement. As the country moves towards green energy and low-emission or future fuels, natural gas is seen as a key transition fuel in that journey.
The primary driver of growth in gas consumption going ahead is expected to be the City Gas Distribution sector which has increased its share in total gas consumption to 20% in just over the last few years with the help of growing urbanisation, government support and the relentless work of CGD players to spread awareness and connectivity to bring gas to every household, vehicle and industry across the country. In this issue of GSR, we bring to you the special story of the 25-year journey of one of the pioneers of the CGD industry, Indraprastha Gas Limited which led India’s CGD revolution.
Also, as we can’t emphasise enough the role of natural gas in the ongoing energy transition, we bring to you the current status and trends of three low-emission fuels – hydrogen, biomethane and biogas through the feature story, “Low Emission Fuels – Hydrogen, Biomethane and Biogas – Increasing Role in Clean Energy Economy”, in this issue of GSR.
Coming to NGS activities during the last quarter (April-June 2024), it is a pleasure to share that the membership base of NGS continues to grow. During the quarter, Indian Oil Corporation Ltd. (IOCL) was enrolled as the Non-Voting Member of NGS. Also, twelve more professionals have joined NGS as its members (11 as Individual Life Members (LM) and one as an Annual Member).
We are happy to inform the readers that NGS entered into a Heads Of Agreement (HoA) (Non-Financial) with Hydrocarbon Sector Skill Council (HSSC) on April 2, 2024. The objective of this HoA is to execute skill development initiatives including training in the hydrocarbon and allied sectors focusing on entry-level and middle level workforce engaged in the industry, service providers, project sites and others. It will also focus on upskilling and reskilling of workforce under leadership development and management programs for technical and managerial expertise by HSSC.
We are excited to share that Mr. Andrew Musgrave, President, Institution of Gas Engineers and Managers (IGEM) along with Mr Oliver Lancaster, CEO visited the NGS office, Noida on April 23, 2024 to discuss the issues of understanding and mutual collaboration. IGEM is a UK-based professional engineering institute founded in 1863 and is engaged in supporting gas industry professionals and organisations in achieving and maintaining highest standards of professionalism in the fields of natural gas, CGD, hydrogen and biomethane. Both IGEM and NGS agreed to sign an MOU with the objectives of (a) facilitating communication between both the bodies (NGS and IGEM) (b) developing knowledge of the standards/regulations pertaining to natural gas/CGD industry and, (c) drawing upon IGEM’s technical standards expertise to further standards and certification in the gas sector within India.
Further, ED, NGS was invited for a guest lecture on “The Contribution of Public Sector in Nation Building” at IOCL, Marketing Division, NR, New Delhi, on April 16, 2024 on the occasion of ‘Public Sector Day’ celebrations. He also participated and expressed his views at the HR Bharat Conference on “Creating Synergy between Natural Intelligence, AI and Human Touch” held at New Delhi Institute of Management (NDIM) on May 11, 2024.
NGS was the Associate Partner (Non-Financial) for the “LNG India Summit 2024”, themed ‘Natural Gas: Envisioning the Future Beyond 2050’, held at Hotel The Lalit, New Delhi on May 30 & 31, 2024. ED, NGS along with Shri Satish Geda, Sr. Consultant & Shri Pawan Sharma, Sr. Consultant, participated in the summit.
Also, a meeting of NGS officials was held on May 9, 2024 with the faculty of Chitkara University, Chandigarh regarding the finalisation of design structure of the course curriculum for ‘MBA in Energy Management’.
Shri V C Chittoda, Sr. Consultant, NGS attended the 17th meeting of Weights and Measures Sectional Committee, PGD 26, organised by Bureau of Indian Standards (BIS) on April 9, 2024. He also participated in the national seminar on “Standardisation of LPG Smart Meters-cum-Regulators” hosted by BIS on May 17, 2024 at Manak Bhawan, BIS, New Delhi.
The most recent activity undertaken by NGS was of organising the ‘7th Natural Gas Operation and Maintenance (O&M) Conference’ at Mumbai on June 27 & 28, 2024. The conference was organised with the Principal Sponsorship Support from Mahanagar Gas Ltd. (MGL), Mumbai and co-sponsorship by Pipeline Infrastructure Ltd. (PIL), Mumbai. The response to the conference was overwhelming with presence of more than 150 participants from over 30 organisations. The feedback was excellent and the participants found the event very useful. Natural Gas Society takes this opportunity to express its sincere gratitude and thanks to the MD, MGL and his team for providing tremendous support for the conference as well as to PIL for the co-sponsorship support.
NGS expresses its hearty thanks and gratitude to the MD, IGL and his team for sponsoring this special issue of GSR. We would also like to thank our member organisations as well as the individual members for their continued support due to which NGS team is able to continue with its efforts for value addition to its member organisations including member academic institutions and individual members for the development and growth of natural gas transmission & CGD sector in our country.
Valuable suggestions and guidance are solicited from our esteemed members. We look forward to everyone’s support for continual improvement in our activities.
D V Shastry
Executive Director
