Paper: GS – III, Subject: Science and Technology, Topic: Renewable Energy, Issue: Role of gas in emission reduction.
Context:
India’s push towards achieving its net-zero goal by 2070 requires affordable transition fuels. Declining global Liquefied Natural Gas (LNG) prices could help India expand its gas usage, reducing reliance on coal and oil.
Key Highlights:
Global Gas Market Trends: Europe is cutting dependence on Russian piped gas; imports of LNG mainly from the US rose by 20% in 2024–25. Russia, in turn, is exploring new LNG markets, including India.
India’s Gas Scenario:
- Natural gas share in India’s energy mix constitutes 6.7% of total energy consumption.
- Target: 15% share by 2030 (currently off-track due to high prices).
- India has multiple LNG terminals, but on average they operate at only 50% capacity.
- Domestic LNG imports are mostly sourced from Qatar, the US, and Turkmenistan.
Challenges in Gas Absorption:
- High Prices: LNG has averaged $11 per million British thermal units (mBtu). High prices make gas less competitive versus coal and oil in bulk categories like power and transport.
- Infrastructure Gaps:
- Underutilization of existing LNG terminals.
- Limited pipeline connectivity and city gas networks.
- Policy Constraints: Lack of strong carbon pricing or emission trading systems apart from the fiscal pressure limits government’s ability to subsidize gas.
Benefits of Cheaper Gas:
- Emission Reduction: Transition from coal and diesel to LNG can significantly cut COâ‚‚ emissions and local pollutants.
- Energy Diversification: Encourages transport (CNG/LNG trucks) and industrial sectors to shift from fossil fuels.
- Economic Efficiency: Lower gas prices reduce import costs, improve energy security, and stabilize power tariffs.
- Industrial Competitiveness: Boosts energy-intensive industries like fertilizers, ceramics, and steel.
Way Forward:
- Short Term: Leverage lower LNG prices to expand gas share in transport, power, and industry.
- Medium Term: Build pipeline and storage infrastructure; ensure policy certainty for investors.
- Long Term: Integrate gas policy with India’s energy transition strategy—balancing affordability, sustainability, and self-reliance.
- Developing Carbon Market Framework: Proposed carbon markets under the Energy Conservation (Amendment) Act, 2022 could monetize emission cuts from gas transition.
Conclusion:
By strategically expanding LNG use and integrating carbon markets, India can progress toward its net-zero targets without compromising energy security.
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