NEW DELHI: Prime Minister Narendra Modi on Tuesday announced a groundbreaking investment plan of $67 billion in the
natural gas supply chain
over the next 5-6 years. Speaking at the second edition of the India Energy Week in Goa,
PM Modi
emphasized that these unprecedented
investments
are aimed at meeting the surging energy demands of the world’s fastest-growing major economy.
The Prime Minister highlighted the ongoing reforms by his government, leading to a surge in domestic natural gas production. The broader objective is to elevate the share of natural gas in India’s energy basket from the current 6.3% to 15% by 2030. Natural gas is considered a transitional fuel as India strives to achieve net-zero carbon emissions by 2070, being viewed as a cleaner alternative to traditional fossil fuels.
India’s robust economic growth, surpassing 7.5% in the first six months of the financial year, is driving an exponential rise in energy needs. Modi noted that India is the third-largest consumer of energy, oil, and LPG globally, the fourth-largest LNG importer and refiner, and the fourth-largest automobile market. Anticipating a doubling of energy demand by 2045, Modi invited global investors to seize the opportunity in the world’s fastest-growing energy market.
The Prime Minister held a roundtable discussion with global oil and gas CEOs and experts, emphasizing the need for sustainable, affordable fuel for all. Modi underscored India’s role in shaping global energy trends, showcasing its ability to meet domestic needs while contributing to the global discourse.
The strategy to meet the growing demand involves a mix of conventional fuels and renewable sources like biofuels and hydrogen. Modi highlighted the government’s commitment to expanding India’s energy capacity through the record-breaking Rs 11.11 lakh crore investment outlined in the interim budget for 2024-25.
The focus on domestic natural gas production is expected to attract significant investment, with the goal of increasing the gas share in the primary energy mix to 15%. Modi stated that this initiative would witness a substantial investment of USD 67 billion over the next 5-6 years.
The Prime Minister also underscored India’s commitment to environmental sustainability, highlighting achievements such as the increase in ethanol blending in petrol to 12% and the formation of a global alliance on biofuels. He mentioned the reduction in carbon emissions by 42 million tonnes through ethanol blending and the government’s plan to set up 5,000 plants producing compressed biogas from agricultural and municipal wastes.
In addressing global environmental concerns, PM Modi emphasized India’s commitment to developing environmentally sensitive energy sources. India ranks fourth globally in renewable energy installed capacity, with renewables accounting for 40% of the nation’s total installed capacity.
PM Modi concluded by saying that India’s National Green Hydrogen Mission would position the country as a hub for hydrogen production and export. He expressed confidence that India’s green energy sector would be a win-win for both investors and industries.
India Energy Week 2024, taking place from February 6 to 9 in Goa, serves as a platform for comprehensive discussions on the nation’s energy future, bringing together stakeholders from across the energy value chain.
