Indian gas surplus on horizon

A report by India’s Ministry of Petroleum has said that the country will possess surplus natural gas in the next two years and its rapidly growing economy is likely to be fueled by it after major discoveries by state-run and private energy companies. Currently, India meets 70% of its energy requirements through imports.

“The major natural-gas recoveries off the east coast and aggressive acquisition of oil and gas blocks overseas might make

India a gas-surplus country in another two years, and the natural fuel is all set to replace the country’s agrarian-based economy,” said the report. “The planned cross-country gas pipeline and city gas-distribution networks will go a long way towards influencing India’s economy.”
The report said that in another five years, almost all commercial vehicles in the country would switch over to compressed natural gas (CNG), which is a cheaper alternative to gasoline. India imports 70% of its crude-oil requirements and is able to meet only half of its gas demand of 170 million standard cubic meters per day (mmscmd).

However, as in the case of garnering overseas oil resources, the specter of China always looms large. India is desperately looking for long-term gas-supply contracts with gas-rich nations in Central Asia, Africa and the Middle East. Some 12,000 megawatts of India’s gas power plants continue to run at only half their capacity.
After a recent decision by the government of Myanmar to supply gas to China, India is making swift maneuvers to ensure the $1 billion Myanmar-Bangladesh-India gas pipeline becomes a reality.

Asia Times