A shortage of gas capacity is limiting the value of gas in India, so a private company is calling for government intervention to simplify land acquisition.

All stakeholders in the Indian gas industry now seem to be in agreement that the country needs a major expansion in pipeline network in order to gasify areas that are now poorly served. This includes the eastern states of Bihar, Odisha, Uttar Pradesh, Chhattisgarh and West Bengal. If the government?s target of increasing the share of gas in the energy mix from 6.5% to 15% is to be achieved, gas supplies have to reach the eastern part of India.

Not only is a large swathe of India?s population unable to access gas, but the lack of adequate pipeline infrastructure is also continuing to limit operations at Petronet LNG?s Kochi terminal, which is used at barely a twentieth of its capacity as it is not connected to the pipeline network.

The Indian government has drawn an ambitious plan to double the gas pipeline network from present 15,000 km to 30,000 km in the near future. According to the oil ministry?s latest annual report, out of the 15,000 km of gas pipeline that it proposes to build, about 14,500 km have already been authorised and these projects are at various stages of implementation. 

Full article in Volume 2, Issue 9 of Natural Gas World Magazine. Now available for Premium Subscribers. On sale May 10, 2017.

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