India Moving Towards Becoming a Gas Based Economy

Indian oil minister believes rise in domestic gas production and imports of cheap LNG will help the country move towards becoming a gas based economy.

In an interview given to news agency Reuters, Dharmendra Pradhan said India will cut third off its emissions rate by 2030, partly by boosting the use of cleaner burning fuels.

Currently, gas accounts for about 8 percent of India's energy mix, while oil accounts for more than a quarter.

India is also looking to strengthen its relationship with Iran in the post sanction environment. Pradhan expects Prime Minister Narendra Modi's visit to Iran later this month to deliver concrete results. On his visit to Iran last month, Pradhan said New Delhi is ready to invest $20 billion for development of energy and petrochemical projects in Iran's Chabahar port. India also wants to build an LNG terminal at the port.

India has expressed delight at Iran’s decision to keep Farzad - B field outside the auction basket. Farzad-B gas field in the Persian Gulf was discovered by India’s ONGC Videsh, the overseas arm of the state-owned Oil and Natural Gas Corporation (ONGC).

On the domestic gas infrastructure front, India is expected to see a lot of activity. There are number of LNG imports terminals under construction on east and west coasts. A number of pipeline projects are also in the offing. Pradhan said improvement in infrastructure should boost industrial use of gas.