India, the world’s fourth-largest refiner, is making significant strides toward achieving energy self-sufficiency under the leadership of Prime Minister Narendra Modi, Petroleum Minister Hardeep Singh Puri announced on Tuesday.
Minister Puri highlighted the country’s focus on expanding its energy infrastructure as it anticipates a doubling of energy demand by 2050. To support this expansion, the Ministry of Petroleum and Natural Gas has implemented a new pricing mechanism for natural gas produced from recent well interventions and new fields. Gas from these sources will be allocated at a 20 percent premium over the administered price mechanism (APM) price, which is set at 10 percent of the Indian Crude basket price. This adjustment further aims to make new gas projects financially viable and encourage increased production in challenging, high-risk areas.
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In its pursuit of energy self-reliance, India has achieved record levels of natural gas production. For the fiscal year 2024, the country produced 36.43 billion cubic meters (BCM) of gas, up from 28.7 BCM in FY21. Projections indicate that production will reach 45.3 BCM by FY26.
Moreover, under the BJP-led NDA government, the Oil Ministry is prioritizing efforts to enhance oil and gas exploration, advance green hydrogen initiatives, and boost natural gas consumption. In June, natural gas consumption rose by 7.1 percent to 5,594 million metric standard cubic meters (MMSCM), reflecting a growing demand for cleaner energy sources. Additionally, the consumption of petroleum products, including petrol, diesel, and jet fuel, increased by 2.6 percent to 20 million metric tonnes (MMT) during the same period.
